OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 6 to 9 Lower |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 20 to 30 Lower |
MILK:
It was a nice turn around in milk futures Monday following the strength of cheese prices. The test will be whether cheese buyers will remain aggressive Tuesday or if the business that took place Monday satisfied the needs of buyers. Milk futures might rebound further, depending on the strength of underlying cash. Milk production continues to improve seasonally, leaving sufficient supply available for demand. Overall weather has been good for cow comfort in much of the country. Crops are being planted with hopes of good yields and good quality as always. The Global Dairy Trade results will be released Tuesday. The previous event showed the largest decline since 2015. We certainly hope that will not be repeated today.
CHEESE:
Business needed to be accomplished Monday and buyers took advantage of lower prices to purchase product. Further buying may take place Tuesday due to prices remaining reasonable. It is likely this may be short lived as the market continues to balance supply with demand. There is concern whether demand will continue at the current pace throughout the rest of the year.
BUTTER:
Price has made a nice rebound over the past two days, moving it back up to the level it has been in March. Active churning provides sufficient supply for demand as well to add to inventory. Cream supply has tightened as ice cream production increases but remains sufficient for demand. Buyers continue to purchase ahead for later demand.
