OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 8 to 10 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 7 to 9 Higher |
MILK:
There certainly has been no lack of volatility this week. Price swings have been significant as traders are uncertain of the price movement of underlying cash. The block and barrel cheese prices diverging has added to the uncertainty. Milk futures generally do not see this much price strength at this time of year unless fundamentals suggest it. Milk production is lower than a year ago but has not resulted in a tight market. Manufacturers are seeing a greater volume of milk due to schools closing for the summer. More schools will close over the next three weeks with more milk moving to manufacturing. This should keep the market balanced.
CHEESE:
The wide spread between blocks and barrels will not hold with the greater potential being that barrels will decline. Buyers have been aggressively bidding barrels higher and once the current frenzy is satisfied, fundamentals may not support the high price.
BUTTER:
Butter price is expected to increase but not without price retracements. International butter prices are stronger which may improve export demand. Improving export demand would add to the bullish attitude already prevalent in the market.
