OPENING CALLS:
| Class III Milk Futures: | 2 to 4 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 2 to 3 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | Steady to 1 Higher |
MILK:
Traders will approach the week with caution as the close on Friday did not indicate that the market found a bottom. Generally, a sharp decline in prices, such as has been seen, results in a price correction as the market is overdone to the downside. However, milk futures are following the underlying cash and there is little indication of support. Lower cash prices have not triggered greater demand, as buyers are purchasing supplies on the way down. Milk prices will not be able to rally if support is not seen from cash. Milk production is improving in many areas of the country as cooler weather improves cow comfort.
CHEESE:
Cheese prices have yet to indicate that support has been found. Aggressive buying interest generally develops from lower prices, but that has yet to take place. Buyers are seeing sufficient supply and increasing cheese production and are comfortable purchasing cheese as needed or on price weakness.
BUTTER:
The butter market shows no indication of support. Manufacturers continue to offer cheese on the spot market and are willing to reduce the price to move supply. Buyers are content to purchase at lower prices, seeing no need to be aggressive.
