OPENING CALLS:
| Class III Milk Futures: | 3 to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 5 Higher |
| Soybean Futures: | 6 to 9 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 3 Lower |
MILK:
Milk futures showed some nice strength last week, but it may not continue unless buyers remain aggressive in the spot market. There is little for traders to get excited over fundamentally. However, buyers may step up more aggressively to seasonally purchase, looking ahead to later demand. The hot weather this week in many parts of the country may also trigger some psychological buying as milk production will be impacted. Milk receipts at the plant level are expected to decrease, which may increase milk prices on the spot market as plants look for extra milk to keep plants running full.
CHEESE:
Cheese buyers may be more aggressive Monday to begin the week as buyers look ahead to later demand and want to increase their inventory. However, there may be a limitation as to how aggressive they will be due to sufficient cheese production and supplies. The upside price potential may be limited.
BUTTER:
The steady cash price last week may indicate supply and demand may be balanced. Sellers may offer butter on the spot market, but may not be aggressive sellers as they see improved retail demand. Reduced churning activity due to lower cream supplies may increase buying interest.
