OPENING CALLS:
| Class III Milk Futures: | 10 to 25 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $2.50 to $3.00 Lower |
| Wheat Futures: | 4 to 5 Higher |
MILK:
Milk futures have been on a big run up with support coming from product sold within the daily spot trade. With the amount of data that will be available this week from reports to the Global Dairy Trade (GDT) Auction, we will see how much of this recent rally can hold up to the news cycle. The Milk Production report has been reducing production expectations, yet the amount of milk the United States has produced this year is a daunting total.
CHEESE:
Cheese has also had an impressive rally lately. The GDT Auction was not friendly to cheese on the previous report. Cheddar and mozzarella were both down 3.9% and 3.7%, respectively. With the current cash trade so strong, futures have rallied quickly. From a world standpoint, is the strength seen over the last week only a U.S. buying story, or will the world see it as too expensive?
BUTTER:
Butter was relatively flat during the last GDT Auction. Most likely, the Cold Storage report later this week will give the market a better look at the current butter supply on hand. Many regions have struggled with available supply of 82% butterfat butter, but have expressed plenty of supply of 80% is available.
