OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 2 to 6 Lower |
| Soybean Meal Futures: | $0.50 to $1 Higher |
| Wheat Futures: | 2 to 3 Lower |
MILK:
Milk futures have enjoyed some nice support over the past few days, with Class IV futures leading the charge. Class IV futures are in a bullish posture as nonfat dry milk continues to find aggressive buying interest in the spot market. Milk production has not been slowing down and is expected to remain higher than a year ago on Friday's USDA Milk Production report. Temperatures in the West and Southwest are expected to be above normal and break some historical records. This will impact milk output in those areas. However, this may not result in higher milk prices as it may only limit the seasonal production increase in those areas.
CHEESE:
Spot cheese prices have been increasing and may return to the previous highs on buying interest. However, the upside potential may be limited as cheese production increases. If cheese prices can maintain these levels, it will be a victory, as the outlook for milk prices has improved.
BUTTER:
The butter price may not see much strength in the near term as buyers and sellers may be content to take care of business at the current level. However, increasing cream prices and increasing temperatures may reduce cream supplies. Ice cream production is increasing, providing competition for cream supplies.
