OPENING CALLS:
| Class III Milk Futures: | 2 to 4 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 5 Lower |
| Soybean Futures: | 8 to 10 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 1 to 2 Lower |
MILK:
Traders will have little to trade on before spot trading. Fundamental news remains the same as it has been for weeks. The market sees limited price direction other than remaining choppy. Supply remains sufficient for demand, leaving the end-users complacent. Milk production remains higher than last year and is expected to remain that way throughout the rest of the year. Some farms continue to add more cows to increase cash flow. Traders will only have daily spot trading to provide volatility this week, as there are no major dairy reports released.
CHEESE:
Cheese prices are expected to remain in a tight range this week with little reason for buyers or sellers to be aggressive. There are sufficient supplies to keep buyers satisfied. Manufacturers want to move supplies to the spot market to keep inventory from building. This should provide support, but limit upside potential.
BUTTER:
The butter price has increased over the past two weeks and is expected to hold, but not see much further upside potential unless an increase in demand requires buyers to be more aggressive. There have been reports of stronger retail demand, but food service demand is not meeting expectations.
