OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 2 Higher |
| Soybean Futures: | 5 to 6 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 6 to 8 Higher |
MILK:
There is little expectation for a specific price direction to begin the week. Fundamentals remain much the same as they have been. Traders are uncertain whether demand will keep up with milk production. Bottling demand for the school systems will reduce the milk available for manufacturing, but that is not expected to tighten the market. There is little expectation for any significant improvement in milk prices in the near term. Seasonal buying interest for dairy products should increase, but with sufficient supplies currently available, the upside price potential may be limited.
CHEESE:
Cheese is struggling to find and maintain support. It may be difficult for prices to return to the levels they were on July 23, before the market fell back. The weakness during the time of the year when prices usually see strength is not a good sign of price strength moving forward.
BUTTER:
The butter price is expected to remain choppy. There have been substantial volumes of loads traded, yet there remains a substantial amount of uncovered offers at the end of spot trading. Butter supplies are plentiful for the time being. Buyers in the spot market have not needed to be aggressive in purchasing for immediate needs or to build inventory for later in the year.
