OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 10 to 16 Higher |
| Soybean Futures: | 8 to 12 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 10 to 15 Higher |
MILK:
There is not much to say about the dairy market. Underlying cash prices were weaker in all categories last week, and there is no indication much has changed in the market over the weekend. If anything, this could have been a bit more bearish as more milk flowed to manufacturing over the holiday period. Educational institutions have been, and will be, closing down for the summer, putting more milk to manufacturing. The shift may not be as great as usual due to some institutions having not held full time face to face education anyway. Milk production continues to remain strong, keeping both manufacturing and bottling amply supplied. June is dairy month, which has many promotions associated with it. That may help to keep demand strong.
CHEESE:
There has been no indication that cheese markets have found a bottom. Continued weakness last week was a surprise given the low level of cheese prices. The wide price difference between butter and cheese has not been seen for a long time. Historically, butter was an indicator of price strength of cheese, but that is not the case and has not been the case for a while.
BUTTER:
Supply and demand seem to be balanced in the market keeping price somewhat sideways. Strong demand from the food service industry continues offsetting some of the weakness of retail demand. Butter futures carry some premium to cash in anticipation of strength of price as time progresses.
