OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | 7 to 10 Higher |
| Soybean Meal Futures: | $4 to $5 Higher |
| Wheat Futures: | 5 to 8 Higher |
MILK:
Milk futures suffered a blow on Friday due to the unexpected decline in cheese prices. There had been a growing idea that underlying cash prices would continue to find support and trend higher. Milk production was running below a year ago with the possibility of further declines due to weather or bird flu. However, demand plays a large factor in price strength. It is the time of year when demand is slower and supplies usually increase. Lower production may not increase supplies significantly, but it may keep a lid on price potential. Higher cow numbers may increase the potential for increased milk output over time, but production per cow needs to improve before that may be a factor. Traders will remain uncertain until spot trading shows further direction.
CHEESE:
The decline of blocks on Friday was the largest one-day decline since Sept. 20, 2023. There have been large increases since then, but this has been the largest decline. This may not mean much as it could have just been a day when sellers aggressively wanted to move cheese and buyers were not interested. The reverse could unfold Monday if buyers are willing to take advantage of the lower prices.
BUTTER:
The price may move in a sideways holding pattern with buyers and sellers comfortable at the current price. There is little incentive to purchase butter aggressively and build storage. Heavy cream supplies will keep manufacturing plants running on full schedules to process the cream. This will keep supply readily available to the market.
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