OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 4 to 5 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 5 to 6 Lower |
MILK:
The negativity in Class IV futures on Monday was a surprise. The strength in the Grade A nonfat dry milk price seemed not to influence the trade. Either the market corrected to come more closely in line with cash, or traders anticipate the price will meet resistance and buyers will step back. The nonfat dry milk market may be developing a void under it, and a price decline may be faster than the increase. There certainly is sufficient milk available for all areas of dairy product production. Traders are not anxious to support Class III milk futures with overnight contracts moving deeper into the red.
CHEESE:
The weakness of spot cheese prices does not provide any indication of the market finding support. The block cheese price has been in a steady downtrend over the past month. Cheese production is slowly increasing while demand remains steady.
BUTTER:
The butter price has remained steady over the past two trading sessions, but that does not indicate the market has found support. Butter supplies remain plentiful, leaving buyers unaggressive as they continue to purchase at lower prices. Butter inventory is expected to move in line with last year over the next few months. The decline in inventory may be less than usual during the second half of the year.
