OPENING CALLS:
| Class III Milk Futures: | 2 to 6 Higher |
| Class IV Milk Futures: | 2 to 4 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | Mixed |
MILK:
Class III milk futures gained nicely in nearby contracts on Monday, but later contracts showed little movement. Traders have been unwilling to step up and purchase contracts and hold for the long term. There is substantial uncertainty over demand, keeping most trading activity confined to short-term positions. There is concern whether demand will increase sufficiently to utilize the increasing milk supply and limit inventory growth. Some manufacturing plants indicate that demand is improving but is less than anticipated. Retail demand has been steady to stronger, but food service demand has been lower than usual for this time of year.
CHEESE:
Cheese prices have been steadily increasing as buyers seem interested in purchasing and storing for later demand. The impact of tariffs on international demand does not seem to be as bearish as perceived. This may provide further support to prices, but upside potential may be limited in the near term.
BUTTER:
Butter supplies are plentiful. Demand is being met with extra moving to storage. Higher inventory may limit the upside price potential later in the year. Buyers have been able to increase ownership without having to chase the market. International demand is expected to remain strong.
