OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Lower |
| Class IV Milk Futures: | 4 t o 8 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Overnight trade indicates lower trade Tuesday, ahead of spot trading. Each time it seems support may be developing under the market, it fails to follow through. It has happened numerous times, leaving the market with limited strength even if underlying cash prices are supported. Howver, higher cash prices continue to be short-lived. Manufacturers want to move supplies as quickly as possible rather than build inventory. This may result in a bullish market later in the year if demand increases seasonally. However, continued strong milk production may keep sufficient milk available for bottling and manufacturing, limiting or eliminating any market tightness.
CHEESE:
Steady cheese prices on Monday were viewed as bearish to the market. The inability of cash prices to increase gives the impression supplies are sufficient due to steady cheese production. More milk will be finding its way to the vat as schools close for the summer. This will offset any increase in demand.
BUTTER:
Butter may be experiencing some price support, but that does not mean it will trend higher. It means it may not fall back to the lows. Demand has been improving. There has been a substantial volume of loads traded on he spot market for quite a few weeks, but it is moving to demand and not building inventory to any great extent. This should be positive in the long term.
