OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 2 to 3 Higher |
MILK:
The spot cheese market will need to prove itself before traders will be interested in buying Class III futures. Cheese prices have not found a level to trigger the buying interest in the spot market. Increased cheese production with more milk moving to manufacturing has resulted in greater interest in moving supply to the market rather than building supply at the plant level. Milk production has been holding strong after the spring flush peak, keeping sufficient milk available for bottling and manufacturing demand. The recent weakness of milk futures is dimming the price outlook for now, but it will not impede milk output as dairy farms will continue to push milk production for cash flow. Stalls are being kept full and feed prices are reasonable.
CHEESE:
Cheese has yet to find a bottom. It seems as if prices have fallen apart, but it has not been that long ago that prices were at the current levels. In the middle of March, cheese prices were about 20 cents lower than they currently are. The weakness is not as devastating as it feels, but there is hope prices will soon find a bottom.
BUTTER:
The butter price is following a seasonal direction and a pattern similar to 2023. The price remained in a range during the first half of that year and then moved to a record high over a three-month period. The fundamentals are not the same, but there are similarities in pattern. Churning is active, but cream supplies are not as abundant as they had been.
