OPENING CALLS:
| Class III Milk Futures: | 10 to 15 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Mixed |
MILK:
The milk market has certainly come of life over the past few days. If this is a reaction to the President signing the bill allowing for 2% and whole milk back into schools, the rally may be temporary. That does not take place overnight, with some projections that it may take until this fall to be fully implemented. The strength has been surprising since the release of the bearish Milk Production report. It will be interesting to see whether this continues or if it was just a frenzy in the market that will settle down again. The hope is that these prices will be maintained and not erased once the exuberance wears off.
CHEESE:
The large increase in spot cheese prices on Monday is not likely to be repeated today. Buying interest was strong, but it may have been tied to buyers leapfrogging over each other in the attempt to purchase supplies before the price increases further. There was strong buying interest in barrels, but buyers were unable to find willing sellers.
BUTTER:
The butter price increase was tempered a little on Monday but continued to show strength. The price may increase further today as quite a few unfilled bids remained at the close of spot trading on Monday.
