OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 7 Higher |
| Soybean Futures: | 12 to 15 Higher |
| Soybean Meal Futures: | $4 to $6 Higher |
| Wheat Futures: | 15 to 20 Higher |
MILK:
Milk futures give the impression they are trending higher, but they may not move up steadily. Underlying cash is expected to be choppy as sellers continue to bring product to the market as seasonal buying increases. Milk production remains above a year ago, which keeps the market supplied with sufficient milk for bottling and manufacturing. Milk production is being impacted by hot weather as milk receipts decline at the plant level, but that has not tightened supply sufficiently to cause any concern. There is still milk in the Midwest being dumped with spot milk available at significantly reduced prices. There should be some change soon with summer weather and increased culling.
CHEESE:
Further weakness of cheese might be seen Monday as buyers may hold back to see how aggressive sellers will be. The market is not lacking in supply overall. There are some areas that indicated retail orders have increased with much of their production committed. Inventory is building but not exceeding year ago levels.
BUTTER:
Price is trending higher, gaining 20 cents over the past month. Supply is sufficient, but buyers are purchasing for later demand and want to get it at a reasonable price. They are currently trying to outbid each other to purchase before price moves too high. Upside potential is expected to be limited.
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