OPENING CALLS:
| Class III Milk Futures: | 3 to 5 Lower |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 6 to 8 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 2 to 3 Lower |
MILK:
Traders will be cautious ahead of the spot market. The large decline of barrel cheese Friday was unexpected, leaving traders wondering whether further weakness might unfold Monday. Milk production is below a year ago but sufficient milk remains available for manufacturing and bottling. The extra milk moving to supply the school systems has reduced the manufacturing supply but it has not caused a concern over a shortage. If the current level of milk production and the slow increase in cow numbers continue, there will be sufficient milk supplies for needs through the end of the year. This may limit the potential for higher milk prices. Traders will be cautious ahead of spot trading uncertain on underlying cash.
CHEESE:
The decline in cheese prices should make it more attractive for buyers to purchase for seasonal demand. However, they may wait to see how aggressive sellers will be. Lower cheese inventory should provide support. If demand improves, inventory could decline more quickly, which could support prices. Buyers have little concern over supply for now.
BUTTER:
Buyers are likely to step up to take advantage of the lower price. There have been a lot of loads traded on the spot market over the past two weeks. Buyers have been able to purchase a substantial supply for upcoming demand. The buyers have not had to be too aggressive as sellers were willing to move butter. Prices are good and the supply has been sufficient which may limit price strength in the near term.
