OPENING CALLS:
| Class III Milk Futures: | 4 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 8 Higher |
| Soybean Futures: | 2 to 6 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 4 to 7 Higher |
MILK:
Class III milk futures are expected to see pressure ahead of spot trading. There is a strong possibility that cheese prices might see further weakness. There is sufficient milk available for bottling and manufacturing, with milk production seasonally increasing. Higher milk production is not overwhelming the market but is being utilized without difficulty. Spot milk prices are steady to $2.00 higher than class, indicating steady demand. Class III milk futures closed lower for the week and may see further weakness this week, possibly retesting the lows over the next few weeks.
CHEESE:
Cheese buyers might be less aggressive today to begin the week, as buyers may hold back in the spot market due to the weakness on Friday. Cheese supplies are sufficient, with price movement based on the demand for fresh cheese. Price may remain in a range at best.
BUTTER:
The strength of butter is expected to be short lived as there are plentiful supplies available for demand. Strong churning activity and higher butterfat content keep the supply of cream readily available. This may limit the drawdown of butter inventories.
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