OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 7 Lower |
| Soybean Futures: | 10 to 14 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 10 to 12 Lower |
MILK:
With the major dairy reports behind us again, there is little for traders to look at besides the daily spot trading periods. Weather is always watched as far as planning for the activities of the day as well as what impact it could have on local as well as U.S. milk production. However, weather does not have an immediate impact on milk prices. That impact is one of a longer-term duration. Currently, milk production is higher than a year ago and cheese inventory is lower. That makes for somewhat of a neutral market. It will be up to demand and the need of buyers to purchase product in preparation for upcoming demand.
CHEESE:
Cheese moved higher on Thursday and Friday, but traders did not get excited about the gains. Price increases have been short-lived. The most recent gain a few weeks ago was the largest and longest gain so far this year, but that came crashing down quickly once buying was finished. Traders do not want to get too excited about another price increase. Even if cheese prices increase again Monday, the impact may be minimal to milk futures.
BUTTER:
Price seems to be carving out a sideways trading pattern with the possibility that support may have been uncovered. The overall downtrend has not yet been broken. Supply and demand seem to be balanced, which leaves the market choppy. The recent Cold Storage report showed inventory 14% above a year ago, which may limit upside price potential through the second half of the year.
