OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 6 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Spot dairy prices have provided good support to Class III milk futures. It seems that delayed seasonal price strength has kicked in, providing support to milk futures prices. It is uncertain whether this support may continue for an extended duration or if it will be short-lived and follow a seasonal pattern. At least the price outlook has been improved by the recent strength of the underlying cash. Class IV futures have found support, but not to the extent that Class III futures have. Spot cheese prices had increased quite a bit more than butter did last week. There may be further upside price potential for spot prices this week until buyers have purchased enough for current needs and seasonal demand.
CHEESE:
Cheese prices have made significant gains, remaining in the wide sideways range they have been in since November. It seems unlikely that cheese prices will move above this top end of the trading range and surpass the previous high of $1.88 set in August.
BUTTER:
The butter price seems to have found support and may be developing a sideways trading pattern. Manufacturers are focusing on retail butter production rather than bulk production. There are sufficient bulk supplies readily available to the market.
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