OPENING CALLS:
| Class III Milk Futures: | 6 to 10 Higher |
| Class IV Milk Futures: | 10 to 15 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 1 to 2 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
Milk futures reacted to the strength in the underlying cash on Monday, and the overnight trade suggests further strength is likely Tuesday. Again, it is interesting that there was significant volume in the June contract overnight, as Tuesday is the last day of trading and it is a cash-settled contract. The June Federal Order prices will be announced on Wednesday. Class IV futures have increased substantially over the past three days in reaction to the strength in the butter and nonfat dry milk prices. Traders may be cautious ahead of spot trading as the recent rally may be met with greater selling interest.
CHEESE:
Cheese prices are expected to remain sideways as the fundamentals show continued strong cheese production due to increased milk output. Buyers have not been interested in purchasing to build inventory as they continue to see sufficient cheese supplies.
BUTTER:
It is uncertain whether the recent strength in butter is the result of an increase in demand or seasonal buying interest to increase ownership for later demand. Hopefully, both are true, and further strength will be seen.
