OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 5 Higher |
MILK:
Class III milk futures closed higher on Monday following cheese prices higher. There was no follow-through in the overnight trade as traders need to see further strength in underlying cash before they buy into the market more aggressively. The general anticipation is for the market to remain choppy near term. The USDA will release the World Agricultural Supply and Demand report Tuesday morning. The report is expected to show estimated milk production this year to be lower than the January estimate. Milk and dairy product prices may show little change from the previous month. This report is not a market-mover as the numbers are estimates.
CHEESE:
There could be further strength in cheese prices, but it is expected to be limited. Buyers will not chase the market aggressively as sufficient cheese is available for demand. Inventory is building seasonally limiting the need for buyers to be concerned over supply.
BUTTER:
The butter price is due for a bounce, but if it does, the strength will be limited. The expectation is for further weakness to develop. The activity churning schedules keep sufficient butter available for demand as well as building inventory.
