OPENING CALLS:
| Class III Milk Futures: | 3 to 5 Higher |
| Class IV Milk Futures: | 3 to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 t 3 Lower |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Class III milk futures had an impressive end to last week, with traders deciding the recent increase in underlying cash was sufficient to warrant aggressive buying. The strength in the equity markets may also have had an influence as this may keep and improve demand. Consumers may maintain or increase their purchases of dairy products as the year progresses. The nearby June contract will move very little as Tuesday is the last trading day for the contract. USDA will release the May Agricultural Prices report today, providing average prices used in calculating income over feed for the Dairy Margin Coverage program. The Planted Acreage and the Quarterly Grain Stocks reports will also be released.
CHEESE:
The recent increase in cheese prices may be sufficient to bring more buyers into the market, maintaining the upward trend. Buying should increase as seasonal demand improves and buyers prepare for demand later in the year. Increased milk availability for manufacturers keeps a sufficient supply of cheese available to the market.
BUTTER:
The butter price has been in a range and has not seen aggressive buyer interest recently. Bulk butter has seen better demand recently, but it has not been sufficient to trigger aggressive interest from buyers. Summer weather has had a minor impact on the cream supply, but not enough to tighten the market.
