OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 14 to 17 Higher |
MILK:
Traders stayed out of the market during the night, leaving limited activity with trading confined to the June and March contracts. It is very unusual to see trading that far out during overnight trade. There were wide bids and offers posted, leaving little opportunity for active trade. Traders will be cautious ahead of cash but may have an upward bias based on the recent trend. USDA will release the April Milk Production report Monday afternoon. I estimate milk production to be down 1% from a year ago with cow numbers down 4,000 head from March. Due to the milk production report, no Dairy Revenue Protection prices will be released Monday.
CHEESE:
Based on the spot trading activity Friday, the block cheese price may move to reduce the wide price gap it holds to barrels. Cheese buyers are concerned about supply as the year progresses and may continue purchasing to get ahead of further price increases.
BUTTER:
The butter price may continue to find support as buyers want to purchase for later demand and ahead of further price increases. Churning remains active with supply sufficient for demand, but buyers are looking ahead. Price is trending higher earlier than usual which has caused further concern for buyers.
