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: | 7 to 10 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 4 to 5 Higher |
MILK:
Class III milk futures were able to find some strength on Monday from the increase in cash prices. However, traders did not get excited about buying into the market as they expect prices to remain in a range. Buyers and sellers are taking care of business without having to be aggressive. The longer prices remain in a range with business being done, the less likely prices will strengthen later in the year. Milk production is increasing seasonally, providing sufficient supplies for bottling and manufacturing. Milk production per cow may be lower than a year ago, but higher cow numbers could result in milk output over the next few months being higher than a year ago. Cow numbers are higher due to dairy cattle slaughter being lower than the previous year for the past 18 consecutive months.
CHEESE:
Cheese prices could see further strength Tuesday, but that may be all. There is little reason for prices to trend higher anytime soon. Demand for cheese needs to improve and exceed the current production to tighten supplies.
BUTTER:
Butter is showing the same pattern as cheese with limited upside price potential for the time being. Butter production is strong, inventory is higher than a year ago and stocks are increasing. The butter price is expected to trend higher at some point, but not in the near term. Churning remains active.
