OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Milk futures fell back to where they were about a week ago with some later contracts making new lows. The futures market does not paint a positive picture of milk prices. Slower demand than a year ago and the tariff cloud continues to hang over the market. It does not seem that tariffs may have much impact, but the uncertainty continues to leave buyers cautious and less aggressive. Milk production is increasing seasonally keeping sufficient supply available for bottling and manufacturing. Unless demand improves or the supply tightens, milk prices may remain under pressure. Milk futures are expected to trade mixed ahead of the spot trading period.
CHEESE:
Cheese prices have declined the past two days and may now be down to the level at which buyers may be willing to purchase. This could support the market, but not enough to turn prices back up again. Inventory is below a year ago but sufficient for demand. Aging programs are being maintained, leaving sufficient fresh cheese available for demand.
BUTTER:
Butter supplies are higher than last year and readily available for buyers. The cream supply shows some signs of slowing, but it remains plentiful, keeping churns running at capacity. The Global Dairy Trade auction will take place Tuesday showing the world butter price substantially higher than the U.S. price. This should keep exports strong.
