OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | 5 to 12 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 5 to 7 Lower |
MILK:
Milk futures settled back on Friday after making new contract highs. Some traders took profits after the large increases of the week. The September Class III contract showed quite a bit of interest overnight with the price increasing. Seasonal buying may be taking place. Traders have been rather complacent for a time but that may have run its course as the underlying cash moves higher. Traders anticipate further support in the cash market as sellers do not seem quite as aggressive as they had been. Lower milk production and increasing demand for fluid milk in schools leave less milk available for manufacturing. Demand for fresh cheese is increasing with barrels in a tighter position than blocks.
CHEESE:
Seasonal cheese buying has kicked in and further buying may take place. The upside price potential is uncertain and will depend on the level of demand that will unfold during the rest of the year. Cheese supply is available but more aggressive buying interest will move prices higher.
BUTTER:
The butter price is poised to increase further even though inventory is larger than last year. The price has been in a range for a time and has broken out to the upside. Buyers may be more aggressive in their desire to purchase supply ahead of further price increases.
