OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Higher |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 7 to 9 Higher |
MILK:
The weakness in Class III milk futures on Monday was confined to the nearby months. The increase in cash prices during the spring flush lends itself to the idea that strength during increasing milk production may indicate further strength when milk production declines during the summer. Of course, it will be up to demand to dictate how high prices will move. More milk is moving to manufacturing and may add to inventory near term. There are reports that retail demand is improving, which may support cash prices, but supply may limit upside potential. The spring flush is past in some areas, while others continue to experience production increases. The potential for higher milk prices should maintain cow numbers as producers want to keep the stalls full. The Global Dairy Trade auction takes place Tuesday.
CHEESE:
The weakness in cheese on Monday may indicate that recent buyers have satisfied their needs. This may reduce the anxiety that brought more buyers into the market due to the consistent price increases. Buyers may hold back to see how aggressive sellers will be. Increasing cheese production may increase the desire for plants to sell aggressively to limit inventory.
BUTTER:
The butter price remains in a range with limited volatility. The buyers and sellers are comfortable with the current price. There is little reason for them to be concerned about an oversupply or a deficit of supply. Cream is readily available, keeping churns busy despite higher demand from ice cream and other Class II manufacturers.
