OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 4 to 7 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 5 to 7 Lower |
MILK:
Milk futures may run out of steam unless further gains unfold in underlying cash. Any weakness could trigger selling as the market adjusts to the movement of spot prices. Traders are a little cautious over continued upside price potential at this time of year. However, the early strength could indicate milk prices may be stronger than anticipated this year. The potential for higher milk prices will increase the desire for farms to increase milk production if possible. Some milk plants have limits on milk production on a per-farm basis. However, if the milk supply tightens, these plants may lift those restrictions. The Global Dairy Trade auction will take place Tuesday.
CHEESE:
Block cheese price moved to narrow the gap to barrels Monday and may move higher again Tuesday as buyers have turned more aggressive. Buyers are more willing to purchase and store products rather than wait for more time to pass to pay less storage costs. There is concern over the amount of supply that may be available as the year progresses.
BUTTER:
The pause in the butter price Monday may not mean the price has reached a threshold. Likely, the market just paused after the aggressive buying last week. If there is a setback in price, it is expected to be temporary. Cream is available but expected to tighten over the next month as components decline, schools close, and ice cream production increases.
