OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 4 to 5 Higher |
MILK:
Milk futures are not expected to show much volatility unless there is a significant move in the spot market prices. The market fundamentals have not changed much, with milk production following seasonal levels. The current price outlook for the futures market will keep milk production strong. Cow numbers and milk production are expected to continue to increase. Feed prices are expected to remain reasonable with plentiful supplies. The weekly crop progress report showed corn 5% planted and soybeans 6% planted. Both are ahead of last year's pace.
CHEESE:
Spot cheese prices are expected to remain in a range. Buyers will purchase what they need with little reason to build inventory. Aging programs will be replenished, but inventory is expected to remain near or below the levels of a year ago. Cheese production will increase as milk receipts increase at the plant level.
BUTTER:
The spot butter price is in a downtrend and may have difficulty finding any upside potential. Manufacturers are moving butter to the market quickly rather than building inventory and speculating on higher prices over time. Strong milk production and higher butterfat content will keep output strong.
