OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Lower |
| Soybean Futures: | 13 to 16 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 12 to 15 Lower |
MILK:
Traders are uncertain of the price direction of underlying cash. This will keep them cautious ahead of spot trading. Traders are unlikely to pick a direction before spot trading but overnight activity indicates the activity may be bearish to prices. Market fundamentals have not changed over the weekend. The continuation of hot weather will impact milk production and components. Milk receipts at the plant level will be reduced, tightening the milk supply. However, a shortage of milk is not expected. USDA's estimates for milk and dairy product prices on the World Agricultural Supply and Demand report were friendly to the market. However, these are estimates and the reality is yet to be seen.
CHEESE:
The weakness of cheese prices Friday was unexpected, indicating buyers are not concerned over supply. They have yet to step up and purchase aggressively for upcoming demand. Inventory is below a year ago but not a concern over supply.
BUTTER:
The butter price is not expected to see much downside but upside price potential is limited. Buyers and sellers are comfortable with the current price range. Business is being done with little fanfare meeting the needs of the market. Price is expected to remain choppy.
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