OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | 4 to 9 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 8 to 10 Higher |
MILK:
Milk futures took back the gains yesterday keeping futures in a sideways range that has developed recently. Sellers have no shortage of supply and continue to offer it to the market. Traders remain very cautious over price rallies as they have been short-lived. Milk is available with spot milk being offered at significant discounts. Milk has been authorized to be dumped in the Northeast Federal Order reflecting the current state of the industry and milk supply. Bottling demand has been steady but schools will be winding down for the summer which will move more milk to manufacturing. Milk consumption will increase at home, but generally not enough to offset school consumption. Overnight trade in Class III was confined to May, June, and July, but there were 137 contracts traded with prices mixed. USDA will release the World Agricultural Supply and Demand report which will provide their estimates for milk production, milk prices, and product prices for the year. This report will also show the initial estimates for 2024.
CHEESE:
The weakness of cheese yesterday indicates the market is not ready to trend higher. Buyers are looking for cheese, but not aggressively. Low bids continue to be placed soon after spot trading begins, which sets the stage for limited price strength.
BUTTER:
Price remains entrenched in a pattern with no indication as to when that pattern may be broken. Buyers and sellers are comfortable in this range with supply and demand balanced.
