OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
The May Milk Production report would suggest milk futures would be under pressure to begin the week. Milk production was 1.6% above a year ago and matched April's increase. Cow numbers continue to increase, indicating farmers are holding onto cows and doing a good job of getting more milk out of them, with production per cow up 7 pounds. This should keep sufficient milk available for bottling and manufacturing, and little concern over supply. Hot weather is impacting milk output in many areas, but the impact is less due to advancements in cooling technology.
CHEESE:
Traders will focus on whether cheese prices are low enough to increase the buying interest from end users. Buyers have been holding back as sellers offered cheese to the spot market at lower prices. Strong milk production will keep sufficient milk available for manufacturing, eliminating concern over supply.
BUTTER:
The butter price may have declined sufficiently to increase buying interest from end-users. Demand is reported to be steady. Inventory in April was 7% below a year ago, which has prompted manufacturing to freeze butter for later demand in the anticipation of higher prices.
