OPENING CALLS:
| Class III Milk Futures: | 10 to 15 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 4 to 12 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Steady to 1 Higher |
MILK:
Class III milk futures posted mostly double-digit gains overnight. The expectation for future strength in spot cheese may be influencing trader buying interest. Volume is good for overnight activity. However, rather than a change in the market direction, it may maintain a choppy market. It would be surprising to see sustained strength in spot cheese and butter prices as milk production increases seasonally. The Class IV price is another story, as strong support stems from demand for nonfat dry milk. Futures have recovered their recent losses and are poised to resume the uptrend.
CHEESE:
Spot cheese prices may find strength, but it may be limited. Higher cheese production should keep a sufficient supply readily available for demand and also increase inventory. Inventory seasonally increased during the first half of the year.
BUTTER:
The butter price is low enough to generate buying interest, but the buyers may not be as aggressive as they have been. The high volume of loads on the spot market may have allowed buyers to build a supply cushion that may leave them less aggressive moving forward. However, lower retail prices have improved consumer demand.
