OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | Mixed |
MILK:
Class III milk futures have been under substantial pressure over the past two days due to the weakness of cheese prices. The market fundamentals are neutral with milk production holding or beginning to decrease seasonally. Milk production has been running below a year ago but may move closer in line with last year as milk prices increase. Farms will reduce culling and will try to improve milk output. Hot weather will impact milk production, but farms have done a good job by improving cooling for their herds. Milk futures will remain volatile as underlying cash will fluctuate as buyers and sellers accomplish business.
CHEESE:
Cheese prices have declined over the past few days, moving prices low enough to increase buyer interest. The trend is higher, but not without volatility. More milk is moving to processing, but that is not expected to overwhelm the market. International demand is strong and domestic demand is slowly improving.
BUTTER:
Retail butter demand is improving, which should begin to reduce inventory during the second half of the year. The increase in butter exports in April indicates better international demand. The Global Dairy Trade auction may show stronger butter prices adding to the support currently under the market.
