OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Traders may not be expecting much Monday as the uncertainty of underlying cash may dominate trade ahead of spot trading. Hot weather is impacting milk production in some areas, but not to the extent that it has impacted the overall market. Spot milk continues to hold a large discount as supply is plentiful. More milk is moving to manufacturing now that schools are closed. This may continue to keep pressure on milk futures as underlying cash activity may remain lethargic. USDA will release the April Dairy Products report Monday afternoon. This will provide the level of production of dairy products for the month. This is not a market mover. There will be no Dairy Revenue Protection prices released Monday due to the report.
CHEESE:
The decrease of block cheese during the second half of the week might bring buying interest back into the spot market Monday. There is no concern over milk supply at the present time, but drier and hotter weather may increase the buying interest of end users looking ahead to later demand. A tighter milk supply generally would mean higher prices as cheese output could decrease.
BUTTER:
Not much is expected for the butter market Monday or even this week. The market has been void of volatility as supply and demand have been balanced. Churning remains active but may be slowing as cream supply tightens.
