OPENING CALLS:
| Class III Milk Futures: | 2 to 4 Lower |
| Class IV Milk Futures: | 4 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 7 to 9 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 6 to 7 Higher |
MILK:
Milk futures continue to erode as the underlying cash prices remain in a sideways pattern. Strength in the spot market is short-lived. This results in futures eroding any premium that had been held in later contracts. June Class III futures closed below $16.00 the past two days. June Class IV futures moved to the lowest level since April 9. Continued strong milk production and increasing cow numbers will keep milk supplies plentiful.
CHEESE:
Cheese prices seem to have found a level attractive for both buyers and sellers. The volume of loads traded in the spot market Monday indicates not only that cheese supplies are plentiful, but that demand is good. Buyers were willing to purchase the large volume that was offered on the spot market.
BUTTER:
Butter has been unable to hold the gains and keep the market trending higher. The price has now dropped to the lowest level since May 27, eliminating about half the gains seen in late May. Even though butter inventory is below a year ago and international demand remains strong, the market is struggling to find support.
