OPENING CALLS:
| Class III Milk Futures: | 3 to 5 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 2 to 3 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 2 to 3 Lower |
MILK:
The pressure seen in milk futures Monday will keep traders cautious Tuesday. Heavy liquidation did not continue in overnight trade as most trading has been short-term, with traders not carrying overly long or short positions. This keeps multiple days of liquidation from taking place. Milk futures are expected to be lower ahead of spot trading as there is uncertainty about whether buyers in the spot market will hold back to see if sellers will remain aggressive. The World Agricultural Supply and Demand report will be released Tuesday, which may impact the grain markets. The report will contain USDA's average estimates for milk production, milk prices, and dairy product prices for this year. The expectation is milk production and prices will be higher compared to the previous report.
CHEESE:
It was encouraging to see the block cheese price rebound from the low during spot trading. This indicated there were willing buyers at the low and, hopefully, we are establishing a bottom. However, the weakness might leave buyers less aggressive as they wait to see if sellers will remain active Tuesday.
BUTTER:
The amount of unfilled bids remaining at the close of spot trading Monday suggests limited downside potential, as buyers are willing to purchase at the low price. However, it is uncertain whether those buyers will remain at those levels or lower bids due to the weakness on Monday. The price may have limited downside, but will remain volatile.
