OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | 2 to 4 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 8 to 10 Lower |
MILK:
Class III futures in overnight trade indicate higher prices today. Traders are bullish on the market. However, spot trading activity will be the focus to see whether the barrel price will continue to increase or if it may be near resistance. Milk production is expected to remain at seasonally low levels. This may be extended as the weather outlook is for above-normal temperatures. Fluid milk demand is strong with reduced volumes available for manufacturing. This may further reduce inventory as demand increases over the next few months.
CHEESE:
The block/barrel spread moved quickly to an inverted 21 cents last week. Barrels moved to a 4-year high as buyers were aggressively looking for supply. Based on the activity in the spot market on Friday, it would indicate further upside price potential is possible.
BUTTER:
The butter price may regain what it lost last week, but the price may remain in a sideways trend. There is sufficient butter for demand with inventory higher than a year ago. Churning is active keeping the butter supply from tightening.
