OPENING CALLS:
| Class III Milk Futures: | 3 to 6 Lower |
| Class IV Milk Futures: | 4 t o 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | $0.50 to $1 Higher |
| Wheat Futures: | 3 to 4 Higher |
MILK:
Class III milk futures did not have a good week and the beginning of the week does not look positive. Futures were lower overnight as there is little bullish news to support prices. Class IV futures did not trade overnight, but there is potential for strength from the underlying cash. Traders continue to scalp the market in an attempt to make a profit rather than establish long-term positions. Supportive fundamental news is limited with most schools closed, reducing milk moving to school accounts and more moving to manufacturing. Milk is readily available for demand with milk production increasing and remaining above a year ago.
CHEESE:
There is little reason for spot cheese prices to trend higher. Manufacturers want to move supplies to the spot market as quickly as possible rather than build inventory. Buyers see sufficient cheese supplies, leaving them less aggressive in the market.
BUTTER:
The recent strength in butter would suggest further upside potential as the price has increased despite heavy offers. Increased demand may be sufficient to require buyers to purchase for immediate needs as well as for contracted needs as the year progresses.
