OPENING CALLS:
| Class III Milk Futures: | 6 to 12 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 5 to 7 Lower |
MILK:
It is likely much of the same price activity will be seen this week. Milk output continues to slowly increase as spring flush continues. Production remains below a year ago, but it has not tightened milk supply sufficiently to trigger a supply concern for end users. Last week, Class III futures gave back much of what was gained recently. Thankfully, there was a rebound Friday to reduce the losses for the week. There are no major reports due out this week. USDA is proposing to make a change to the milk production report. They plan to reduce the number of published states in the Quarterly Milk Production report from 50 states to 33 states. The 17 nonpublished states will be Alabama, Alaska, Arkansas, Connecticut, Delaware, Hawaii, Louisiana, Massachusetts, Mississippi, Montana, New Hampshire, New Jersey, North Dakota, Rhode Island, South Carolina, West Virginia, and Wyoming. These states will be listed as an Other States category. The changes in this report may reduce transparency, increase uncertainty, and increase volatility in the market.
CHEESE:
Cheese prices are expected to remain choppy again this week. Buyers and sellers will do business as supply and demand dictate. Cheese output is steady to higher as many plants run at or near capacity. Spot milk is running at a discount to cash, making it readily available to any plant that needs extra milk.
BUTTER:
Butter prices will likely remain rangebound within the level they were at last week. Demand is holding well with some buyers and manufacturers looking ahead to build inventory for when cream supplies tighten. Buyers may remain unaggressive as they do not feel the need to purchase supply strongly.
