OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 15 to 22 Higher |
| Soybean Futures: | 20 to 30 Higher |
| Soybean Meal Futures: | $3 to $6 Higher |
| Wheat Futures: | 8 to 12 Higher |
MILK:
The only fundamental that really changed over the weekend was the hot weather that moved into many areas. This will affect milk output, but the duration of the hot weather, and the impact on milk output is yet to be seen. This will certainly end the spring flush season for those areas that still recorded increasing milk output. This certain does not mean milk supply will suddenly tighten, but it will give processors a little breathing room after a number of months running at capacity. There may be limited trading prior to spot trading with traders likely focusing on grain prices to gauge what impact that may have on milk production.
CHEESE:
It will be interesting to see if the weakness of blocks will be an anchor on barrels or if barrels will pull blocks higher. One would think block price is low enough to generate more aggressive buyer interest and pull price higher. However, increased cheese production keeps greater supply available for the market.
BUTTER:
Price may continue to work lower and try to test the low end of the trading range again. Buyers seems to have sufficient on hand, leaving them to purchase on an as-needed basis. At best, the market may chop sideways for the foreseeable future.
