OPENING CALLS:
| Class III Milk Futures: | 4 to 6 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 2 to 4 Lower |
MILK:
It was a surprise to see milk futures pressured after spot trading showed no price movement. Recently, steady prices resulted in futures strength. However, with the recent strong price gains, traders may think it has reached a threshold. The market has moved up quickly and may be ripe for a price retracement. The strength has improved the price outlook, which may limit increased culling as we move through the year. This may keep milk production higher as farms will maintain and even add cows.
CHEESE:
Steady cheese prices Monday with no trading activity were very unusual. There were two uncovered offers for barrels with no urgency to sell them. This leaves traders guessing if stronger prices may have run their course or if it was a pause in a higher trending market. There is some concern the higher prices may impact both domestic and international demand.
BUTTER:
It was not a surprise to see no activity in spot butter Monday. The market is balanced with sufficient supply available to buyers out in the country, reducing the need for them to come to the daily spot market. Although ice cream production is increasing, cream supply is sufficient to keep churns running on full schedules.
