OPENING CALLS:
| Class III Milk Futures: | 4 to 10 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 12 to 16 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 6 Lower |
MILK:
The strength of milk futures should carry over into Tuesday as traders may feel the market has become seasonally bullish. It is too early to tell whether cheese buyers are purchasing aggressively in anticipation of increasing demand or if the current buying strength is due to immediate orders needing to be filled. Milk production is running along seasonal lines and remains below a year ago. There is sufficient milk for the current demand. More milk is moving to the Southeast as schools are opening and local supplies are insufficient to fill the school pipeline. This reduces the amount of milk available for manufacturing. Milk production is not expected to increase anytime soon as summer weather impacts cow comfort and feed intake. Later milk futures contracts may slowly increase in anticipation of better prices for the rest of the year.
CHEESE:
The strength of cheese prices Monday may keep sellers on the sideline as they wait to see how aggressive buyers will be. Buying for recutting and packaging for the holidays may be taking place with buyers wanting to purchase aggressively before prices increase further.
BUTTER:
The butter may begin to trend higher as buyers may be more aggressive. Seasonal strength should take place as buyers look to cover their needs. The price has been higher and in a range for quite some time but that may have ended as the trend may follow the seasonal pattern of strength. Price may retest and exceed the high of June 4 at $3.1625.
