OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 12 to 14 Higher |
| Soybean Futures: | 15 to 20 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 44 to 55 Higher |
MILK:
Class III milk futures have been holding despite weakness of cheese over the previous two weeks. It seems as if traders are intent on holding out for a rebound of prices. This has been the pattern and there is anticipation it will happen again. The level of demand is a bit uncertain as food and fuel prices increase. Traders may be cautious until spot trading Monday due to the pressure on barrel cheese and butter on Friday. The Dairy Products report generally is not a market mover, but lower output in April reflects lower milk production than a year ago as well as lower output due to a shortage of employees at many facilities. This may have an impact if demand continues to remain steady. The Global Dairy Trade auction and World Agricultural Supply and Demand report are on deck for this week.
CHEESE:
Cheese prices have been weak over the past month. Blocks have declined 7 cents while barrels have declined 13.50 cents. Yet Class III futures have held well. Dry whey has provided support rebounding from the lows of the previous week, but price remains 2.75 cents below what it was a month ago. Prices may struggle early this week as buyers may not be very aggressive.
BUTTER:
The weakness of butter Friday may cause buyers to step back for a bit this week. Immediate needs might have been satisfied and high price might be slowing demand. Production is keeping pace with demand as well as building inventory from month to month. However, inventory is not gaining on last year, remining quite a bit lower. Lower butter output in April than the previous year should provide support to price.
