OPENING CALLS:
| Class III Milk Futures: | 5 to 12 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 4 to 8 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 15 to 19 Higher |
MILK:
The market continues to feel the effects of the milk production report as it indicated milk production may remain strong for an extended period. The report showed cow numbers have not decreased due to low milk prices. Culling may increase as milk prices declined again in June with Class III back to the lowest price since May 2020. There is also the uncertainty as to the feed supply under the current drought situation in much of the Corn Belt and what that could mean for feed availability and prices. June futures and options will cease trading Tuesday with the June Federal order prices to be announced on Wednesday. Cheese prices will need to find some support or more premium will erode out of futures.
CHEESE:
The May Cold Storage report was neutral to the market with inventory increasing seasonally but remaining below a year earlier. This will have little impact on the market unless demand increases, drawing down inventory at a more rapid pace. However, with milk supply plentiful and cheese production strong, that may take a longer period as buyers do not need to be aggressive anytime soon.
BUTTER:
Butter supplies are higher than a year ago with churning active. This may keep price rangebound for an extended period as buyers and sellers are comfortable. There is little reason to be concerned over supply.
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