OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 6 Higher |
MILK:
Not much change is expected in the market to begin the week. Fundamentals remain the same as last week, with little reason to believe anything will change the market significantly for a time. Each time it seems as if the market may be finding support, further weakness takes place in the cash market as sellers continue to offer loads for sale. Milk production is not slowing down and will remain strong. The gains may not be as large this year as compared to last year, but are expected to be higher. The World Agricultural Supply and Demand report will be released Monday and will show USDA's estimates for milk production, milk prices, and dairy product prices for the year. It is expected they may leave milk production unchanged, but will reduce milk and product prices.
CHEESE:
There is not much anticipation of strength in cheese prices for Monday or in the near futures for that matter. Manufacturers intend to move supply to the market as quickly as possible to limit the buildup of plant inventories. Strong cheese production keeps the market supplied with product, limiting the need for buyers to be aggressive.
BUTTER:
Lower butter prices should stimulate demand -- and they have to some extent. However, weekly retail prices are not much different from what they were a year ago, according to the weekly promotional ad report. Prices should be much lower than a year ago, and if they were, demand would be higher, and greater butter consumption would be seen. The price may see further pressure this week.
