OPENING CALLS:
| Class III Milk Futures: | 3 to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 5 to 7 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 2 to 3 Higher |
MILK:
Milk futures may struggle ahead of spot trading as traders assess the longer-term implications of the milk production report. Increasing cow numbers and production per cow may move milk production above a year ago over the next months. Increased milk production will be needed if demand increases along seasonal levels. Higher milk prices will increase the desire for farms to limit culling and improve milk production. Heifer supplies are tight, but higher prices are not as difficult to pay when the outlook is for higher milk prices.
CHEESE:
Cheese prices may be near a threshold and why prices have been choppy and diverging. Barrels are in a tight supply position with better demand keeping the block/barrels spread inverted and wide. More milk is moving to deficit areas for school systems reducing milk for manufacturing. Spot milk prices are increasing as supply tightens. However, there is sufficient available to satisfy demand.
BUTTER:
Trading activity has increased significantly for butter with quite a few loads already traded during the spot trading period this week. This has not been bearish to the market but has limited upside price potential. Churning is active but not quite as strong as it had been.
