OPENING CALLS:
| Class III Milk Futures: | 4 to 6 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 6 Lower |
MILK:
Milk futures are having a difficult time regaining the losses sustained this month. Underlying cheese prices may be developing a level at which buyers and sellers are comfortable taking care of business. This will limit the upside price potential in the near term. Milk production continues to outpace a year ago and is expected to remain that way as cow numbers are higher and production per cow increases. The World Agricultural Supply and Demand report will be released on Thursday and is expected to show USDA raising its estimates for milk and dairy product prices.
CHEESE:
Block cheese may regain the loss that took place Friday, but further upside price gains may be difficult to achieve. Cheese supply remains sufficient for demand, with cheese output increasing. Inventory should decrease during the last half of the year, which could support prices through the fall.
BUTTER:
The butter price seems to be consolidating but is expected to trend higher as the summer progresses. Retail demand is improving, and cream supplies will slowly tighten as hot weather reduces the butterfat content in milk. Ice cream production is pulling larger quantities of cream for production.
