OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 3 to 6 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Mixed |
MILK:
Milk output in May was 0.9% below a year ago, which was lower than expectations. However, that was offset to some extent by the increase in cow numbers of 5,000 head. Yes, cow numbers are 68,000 head less than a year ago, but cow numbers are at the highest level since October 2023. The lower milk production was already factored into the market, resulting in limited trading activity overnight and mixed prices. The main focus will be whether cheese prices have declined sufficiently for buyers to step up and take advantage of the lower prices. The lower milk production may increase buyer interest, but that has already been absorbed into the market and has moved into the supply and demand channels. Hot weather and extremely wet weather in some areas may hurt milk production moving through the end of the month. Currently, there is sufficient milk available for bottling and manufacturing.
CHEESE:
Cheese is available and sellers have been moving supply to the spot market. There has been little interest in holding onto cheese for a potential price increase later in the year. Inventory has not been building but that has not provided consistent support. The May Cold Storage report will be released on Tuesday.
BUTTER:
Butter price is expected to remain in a range for the near term. Churning has been active with the intent to build inventory. Cream supply is tightening and will reduce butter output in the coming weeks. Both domestic and international demand is improving.
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