OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 13 to 15 Higher |
| Soybean Futures: | 25 to 26 Higher |
| Soybean Meal Futures: | $4 to $5 Higher |
| Wheat Futures: | 19 to 21 Higher |
MILK:
There has been little fundamental change in the market, leaving milk futures choppy. This is not expected to change anytime soon. Milk production continues to exceed that of a year ago. Any increase in demand is being readily met without tightening supply. Class IV futures have been holding due to the strength of nonfat dry milk. However, the slight weakness last week could indicate the price may have met resistance and demand may be slowing. The price is not expected to fall apart but may hold at a lower level. There is much uncertainty in the market and it will keep traders preferring short-term trading rather than establishing long-term positions.
CHEESE:
The question is whether the block cheese price will hold support at the bottom of the trading range or if further weakness develops. Cheese demand is good, but production is higher due to increased milk receipts at plants. More milk will be diverted to manufacturing as schools close for the summer.
BUTTER:
The butter price is trying to increase as demand is strong. However, churning is active with plants operating seven days a week. Churning is expected to decrease seasonally as summer weather impacts milk production and butterfat content.
