OPENING CALLS:
| Class III Milk Futures: | 4 to 5 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 7 Higher |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Traders are uncertain whether cheese prices have found support or if it is just immediate buying interest absorbing the volume of block cheese coming to the spot market. Once those needs are filled, prices could see further weakness. Buying interest could improve seasonally, but there is sufficient milk available, with milk output continuing to outpace last year. Dairy demand has yet to improve to absorb the increased milk production. Cow numbers are expected to continue to increase as farms keep barns full, production strong and provide cash flow for the operation.
CHEESE:
The substantial trading volume of block cheese this week has provided some hope that buyers are turning more aggressive. This may be positive as the summer continues, or it may limit the upside price potential later in the year. If more cheese is purchased at lower prices, there may be less needed to purchase later in the year, limiting the upside price potential.
BUTTER:
The butter price seems to be moving in a sideways pattern for the time being. Butter inventory is below a year ago and may support the market. However, the upside may be limited unless demand improves, and the cream supply tightens.
