OPENING CALLS:
| Class III Milk Futures: | Steady to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 5 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $2 to $5 Higher |
| Wheat Futures: | 4 to 7 Lower |
MILK:
Traders may hold a bias to the downside Monday morning prior to spot trading. The selling of cheese on Friday was a bit unexpected, but not in light of weakening corn price. A rapid planting pace and improving moisture in the forecast in main corn growing areas along with increased corn acres would provide more corn supply for the year. A reasonable corn price would assure continued strong milk production. Summer weather will dictate the level of milk production as hot weather will impact cow comfort and reduce milk output. This will be seen as the summer unfolds and weather reports cause extreme volatility. Little else has changed as far as market fundamentals are concerned.
CHEESE:
The weakness of cheese on Friday may have buyers hold on the sideline Monday waiting to see if sellers will remain aggressive. However, the pattern has been that a break of cheese prices has brought buyers in looking to purchase supplies at lower prices. The magnitude of the decline on Friday is cause for concern as buyers did not step in as aggressively as they have been.
BUTTER:
Price has been holding well as demand remains strong overall. Retail demand has softened a bit, but restaurant demand continues to increase. Restaurant traffic has improved remarkable as people want to get out and make up for what they missed. Butter production is strong but slowing somewhat as cream supply tightens. Some plants are opting to sell a portion of their cream supply.
.jpg)
