OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 1 to 3 Higher |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 8 to 10 Lower |
MILK:
There could be some short-covering in Class III milk futures ahead of spot trading. The decline on Friday due to cash weakness may be viewed with skepticism. Buyers may step in to take advantage of the decline to increase ownership of more cheese for later demand. However, the upside may be limited as milk production is stronger than a year ago and may continue that way. The spring flush has come to an end in much of the country. However, milk supplies are expected to be plentiful as schools close for the summer and more milk moves to manufacturing.
CHEESE:
Cheese prices could see further weakness as buyers may step back to see how aggressive sellers will be. However, Friday's weakness or further weakness may increase the buying interest of end users. The Cold Storage report was not bearish to the market as cheese inventory remains below a year ago.
BUTTER:
The butter price may see further support now that the price has broken out of the sideways trading range. This could increase further buying interest as the seasonal increase may begin. There is an indication that demand is improving. The Cold Storage report showed butter stocks 7% below a year ago, which is somewhat bullish.
