Monday Morning Dairy Market Update - Uncertainty for Week Ahead

OPENING CALLS:

Class III Milk Futures:	Mixed
Class IV Milk Futures:	Mixed
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	5 to 7 Higher
Soybean Futures:	18 to 24 Higher
Soybean Meal Futures:	$2 to $4 Higher
Wheat Futures:	12 to 15 Higher

MILK:

It is anyone's guess as to price direction this week. The decline over the past month has been relentless. Spot cheese prices have been unable to find solid support. Milk supply remains sufficient for demand. Demand has not been sufficient to tighten supplies. High inflation is having an impact on food purchasing at the grocery store and is impacting the frequency of people eating away from home. People need to eat but substitutions are made which may impact demand for various items or there will be less consumed of certain items. USDA will release the June Milk Production and Cold Storage reports later this week.

CHEESE:

The significant decline of cheese prices last week did not garner much attention from buyers. Growing inventory leaves sufficient supply for demand. Demand for fresh cheese has been lackluster. There is little concern over tightening supply at the present time.

BUTTER:

Price continues to remain in a range. Buyers remain willing to purchase product at current levels, feeling there is limited downside potential. Both domestic and international demand is sufficient to keep price supported. Price is expected to remain in the current range.