OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Mixed underlying cash prices Monday left milk futures mixed. Trading activity ahead of spot trading Tuesday may follow a similar path as traders will be cautious over cash prices. Milk futures are holding but are not showing a solid trend higher. There is a feeling markets will trend higher as the rest of the year unfolds and seasonal demand improves. Milk production is expected to remain below a year ago, which may tighten the supply available for manufacturing when demand is high. However, the pattern of lower culling rates and increasing cow numbers may minimize the tightness of the milk supply.
CHEESE:
The setback of the block cheese price Monday keeps the market entrenched in a sideways trading pattern. Cheese buyers are not concerned over supply and have been purchasing on price declines. Inventory is lower than a year ago but has not been a cause for concern as the buyer and sellers take care of business as needed. Aging programs are being maintained and building ahead of expected demand later in the year.
BUTTER:
The butter price remains sideways as supply and demand are balanced. Churning is slowing as the cream supply is tightening. This is seasonal and not unexpected. Manufacturing plants take advantage of this time to perform maintenance. Some cream is sold due to improving cream prices as plants reduce production. The nonfat dry milk supply is sufficient for demand, leaving the price sideways.
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