OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 4 Lower |
MILK:
Traders seem uncertain whether there will be further upside potential for milk prices near term. Prices moved higher in anticipation of increasing demand and now may hold until demand proves itself. Even though milk production has been strong and the inventory of cheese and butter has been increasing, they continue to remain below a year ago. That indicates demand has kept up with the increasing milk supply. If cow number and milk production per cow continue to increase, we could see a counterseasonal move between supply and demand. That could limit the upside price potential. However, if demand improves seasonally, milk prices will see further strength. The Global Dairy Trade auction will take place Tuesday.
CHEESE:
The barrel cheese price has held steady and may limit the upside movement of block cheese. Buyers may not be as aggressive at the current price level as the market will need to prove itself to support further gains.
BUTTER:
The butter price is expected to trend higher, exceeding the previous high of last week. Market fundamentals are improving with lower inventory than a year ago and increased retail demand. Buyers are ready to pick up what is being offered in the spot market.
