OPENING CALLS:
| Class III Milk Futures: | 10 to 15 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 6 to 9 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
Milk futures are expected to be under pressure ahead of spot trading Tuesday as traders react to the bearish implications of the April Milk Production report. Milk production was better than expected with milk output in the U.S. only down 0.4% from the previous year. Milk per cow was 9 pounds above April 2023. This gives the impression milk production may exceed last year's level if the weather remains moderate and culling slows. The report might impact the aggressiveness of buyers in the spot market as they may not be as concerned over supply.
CHEESE:
The weakness of cheese Monday may cause buyers to step back to see if sellers will be more aggressive as they want to take advantage of the higher prices. The downside price potential may be limited based on demand and the inventory on the Cold Storage report for April. USDA will release the April Cold Storage report Friday.
BUTTER:
Price continued higher Monday and may not be impacted by the milk production report. Buyers have been focused on increasing ownership for a potentially tighter cream supply and increased butter demand as the year progresses. The price trend has been higher and looks to continue for the foreseeable future.
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