OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 6 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 1 to 4 Lower |
MILK:
Class III milk futures diverged with nearby contracts lower and later contracts higher. Class IV futures were higher in response to the increase in butter and nonfat dry milk prices. Time is running out for any significant changes in the July contract, as most of it will be priced by the middle of next week. Milk production is holding well despite the recent hot weather events. Components are slipping but continue to remain at record highs. Feed prices should remain reasonable and supplies plentiful based on the planted acreage report and current crop conditions.
CHEESE:
Cheese prices are struggling to find footing, which has kept prices choppy. Traders feel there is limited upside price potential for the time being, with no indication of tightening supplies. Cheese production is steady, with plants moving supplies to the spot market to limit the increase of plant inventories.
BUTTER:
Butter moved to the highest price since Nov. 15, 2024, renewing the uptrend. The price is not expected to increase by leaps and bounds but may trend higher as seasonal buying interest and demand improve. International interest remains strong as U.S. butter is very competitive on the world market.
