OPENING CALLS:
| Class III Milk Futures: | 3 to 6 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 2 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 2 to 3 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 3 to 5 Higher |
MILK:
Buying interest was strong on Tuesday as all spot price categories posted nice gains. The recent reports have been digested with traders looking ahead to the potential for demand through the rest of the year. Buyers of dairy products seem to be more interested in increasing ownership to hedge against potentially higher prices later in the year, even though supplies are currently sufficient. Demand seasonally increases during the second half of the year, but the extent of that demand is uncertain. All schools will be closed over the next week, with manufacturing receiving higher milk volumes.
CHEESE:
There is a strong possibility that buyers may remain aggressive Wednesday. The increase may bring more buyers into the market to purchase before prices increase further. The realization that downside potential is limited may cause buyers to leapfrog to buy what sellers offer.
BUTTER:
The butter price has increased with a vengeance, gaining 17.75 cents over the past three trading days. This increased buyer excitement, and any price weakness will be viewed as a buying opportunity. Further strength is expected Wednesday.
