OPENING CALLS:
| Class III Milk Futures: | 5 to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 6 to 8 Lower |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Last week was positive for Class III milk futures as they followed cheese prices higher. However, traders remained cautious with futures not reacting as much as they should have compared to the underlying cash. Milk production continues to increase, keeping a sufficient supply available. Spot milk prices are as much as $7 below class, with some plants having no capacity to purchase extra milk. The current supply and demand balance leaves underlying cash and milk prices in a range with support under the market, and limited upside potential.
CHEESE:
Cheese prices increased last week but may be near price resistance. Buyers took advantage of the lower prices to purchase for current needs and to increase ownership for later demand. However, they may be unwilling to continue to be aggressive as there is sufficient cheese supply available to the market. Sellers may turn more aggressive to move supply at higher prices.
BUTTER:
The butter price is not expected to move above the range it has been in. Churning remains active due to abundant cream supplies, which keeps butter readily available to the market. Export interest remains strong due to the low U.S. price.
