OPENING CALLS:
| Class III Milk Futures: | 5 to 12 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 6 Lower |
| Soybean Futures: | 6 to 8 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 4 to 6 Lower |
MILK:
The strength of Monday in Class III futures may carry over Tuesday ahead of spot trading. The buying that took place Monday is likely traders getting into the market in an attempt to take a short-term profit. It would not be surprising to see futures come under some selling pressure ahead of spot trading to bank those profits in the event cheese prices slip back. Higher futures prices are welcome and hopefully the market will find further support. The nearby July contract is nearly priced and will move mainly based on the weekly AMS dairy product prices report. Class III futures are holding a premium in subsequent contracts, while Class IV futures are mostly the same through the end of the year.
CHEESE:
Cheese buyers have turned more aggressive. Demand is good and buyers are looking ahead to prepare for demand later in the year. There is concern the upside price potential may be limited as there is not a shortage of milk moving to the vat. However, increasing prices may bring more buyers from the sidelines to purchase before prices move higher, adding to the strength.
BUTTER:
Butter has not found the support cheese has recently shown. That does cause concern as the butter market has generally been the leader of price direction for cheese. Buyers of butter have been able to purchase sufficient supplies for demand with some reports that inventory is beginning to build slightly.
