OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Higher |
| Soybean Futures: | 5 to 8 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 18 to 22 Higher |
MILK:
It may be slow going Tuesday morning after an extended weekend. Traders may hesitate to become too involved in trading prior to seeing the results of spot trading. There is an overall optimism over milk prices as the year progresses. However, Class III futures hold a discount to cash as the year progresses while Class IV shows a premium through the third quarter. All schools will be closed for the summer by the end of this week with milk already having been diverted to manufacturing as some schools have already been closed depending on the area. Forage harvesting has been and will be in full swing this week with forage quality expected to be very good. This will certainly help on the feed bill. Milk production continues to improve in many areas while other areas have seen a leveling of production growth. USDA will release the April Agricultural Prices report Tuesday afternoon. This will have the average prices used in the calculation of income over feed for the Dairy Margin Coverage program. No payments under the program are expected.
CHEESE:
Prices declined last week and may struggle again this week. Demand has been good but there is indication of a slight slowing taking place as inflation may be having a greater impact. Cheese production is increasing with more milk coming from bottling. This should satisfy demand and add to inventory.
BUTTER:
Price may retrace now that buyers have been satisfied and price is high. The weakness from the end of the week is expected to carry over this week. More cream was available over the weekend for churning with more potentially available as long as ice cream manufacturers have difficulty sourcing some of their key ingredients for production. This may keep churns more active than anticipated for this time of year.
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