OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Milk futures have not been able to find a bottom with Class III contracts nearly eliminating the gains since the beginning of May. Traders have had little to get excited about as underlying cash has been unable to trend higher. The higher prices seen a few weeks ago have evaporated, but that has not dampened the interest of farmers to maintain cow numbers and improve milk production. USDA will release the World Agricultural Supply and Demand (WASDE) report this morning. The report contains USDA's estimates for milk production, milk prices and dairy product prices for this year and 2026.
CHEESE:
Retail cheese demand is improving, but it has not been enough to offset the increasing cheese production; otherwise, cash prices would be trending higher. Cheese buyers see no need to be aggressive as the supply keeps up with demand. Buyers are purchasing what comes to the spot market without being concerned about supply.
BUTTER:
The butter price seems to have found a level where buyers and sellers are comfortable and may remain sideways. However, strong export demand and improving retail demand should support the market. Churning remains active but is expected to slow as summer weather impacts milk output and component values.
