OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 1 to 2 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 5 to 7 Lower |
MILK:
Milk futures found support from the increase in block cheese and butter. It is difficult to determine how much strength will be seen in the underlying cash as the supply of milk and dairy products remains sufficient for demand. Traders did not receive much indication from the milk production and cold storage reports last week to indicate any tightening of the supply. Domestic demand needs to improve, or the supply of cheese could increase counter seasonally. The current fundamentals suggest the market may remain in a range with limited upside potential.
CHEESE:
The unfilled bids for blocks remaining at the close of spot trading on Monday would suggest the price might increase today if those buyers need to be aggressive to fill demand. Sellers may hold back to see if the buyers are going to be more aggressive. If so, they will hold back and sell at higher prices. In general, the market seems to be balanced.
BUTTER:
The increase in the butter price over the past two days was welcomed, but the rebound may be limited. Butter inventory below a year ago provides support to the market, but steady to lighter demand may limit the seasonal decline.
