OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 8 to 10 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
Class III milk futures remain in a sideways trend in closer months while trending higher in later months. Class IV futures continue to establish new contract highs. Strong underlying cash for butter and nonfat dry milk provide support for Class IV prices with the potential to see further upside. Class III futures have been the recipients of stronger dry whey and continued optimism. Milk production is leveling off with sufficient supply for demand. Schools are closed, which is moving more milk to manufacturing. Some areas indicate over-abundant milk while most are balanced. There is a tight supply of replacements, which will keep cow numbers from increasing significantly. Cows will continue to move around from a farm that goes out of business to another farm that has room.
CHEESE:
Block cheese price has remained steady this week while barrel price had declined, moving to the lowest level since April 4. However, some traders believe downside is limited with higher prices yet to come. But there also is concern whether demand will continue to hold as it has.
BUTTER:
Price is on the verge of making a new high for the year with the next price target being $3.00. If price moves above $2.9350, it will be at the highest level since Sept. 28, 2015. Buyers have been aggressively purchasing to fill orders and increase ownership for later this year when demand is higher. Butter demand has slowed at the retail level but that has not had any impact on buyer interest.
