OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 4 Lower |
| Soybean Futures: | Steady to 1 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 2 to 4 Lower |
MILK:
The beginning of the week is expected to be slow with traders uncertain of the direction of the underlying cash. The weakness of block cheese on Friday was a surprise and an indication that cash will remain volatile. There is no shortage of milk for manufacturing as schools are closed for the summer. This leaves sufficient milk available for the production of dairy products. Demand is showing signs of increasing, which should support milk prices. The extent of that support is uncertain. Demand needs to improve to keep pace with increasing milk production or milk prices will have limited upside potential.
CHEESE:
The weakness of block cheese seen on Friday is expected to be short lived. Buyers may take advantage of the weakness to purchase any cheese that might be available at lower prices. Sellers may not be too adamant about selling at lower prices, limiting the downside.
BUTTER:
The butter price is expected to increase slowly. Buyers are active as 102 loads changed hands on the spot market last week and the price still gained 8 cents, moving to the highest price since Jan. 15. The market may follow a similar pattern to 2023. Fundamentals are different, but price movement may be similar.
