OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 5 to 8 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 4 to 7 Higher |
MILK:
Milk production is slowing as cow comfort is impacted by weather. However, there is sufficient milk available for demand. Spot milk is available with most of it at a price above class. More milk will move to bottling in about a month as bottlers prepare for school demand. That is when the milk supply will tighten and prices could trend higher if overall demand improves. The current market seems to be comfortable with current supplies. Buyers are taking care of business as they need and not being too excited about later demand. The cheese inventory is lower than a year ago but adequate for current demand with purchasing or upcoming demand taking place on price weakness.
CHEESE:
Cheese prices are expected to remain in a range in the near term. Buyers and sellers are comfortable doing business at the current price level with sufficient supply for demand. The anticipation is for cheese demand and prices to improve but this may be already factored in. Buyers have been increasing ownership without fanfare taking advantage of choppy prices.
BUTTER:
The butter price is supported but remains in a range. The price is poised to revisit and exceed the price of early June. If that price is exceeded, it would reach the highest level since October. Seasonal demand may see that happen sooner rather than later. Butter production is slowing as the cream supply is tightening.
