OPENING CALLS:
| Class III Milk Futures: | 4 to 10 Lower |
| Class IV Milk Futures: | 10 to 15 Lower |
| Butter Futures: | 2 to 3 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 7 to 8 Lower |
| Soybean Meal Futures: | $0.50 to $1 Lower |
| Wheat Futures: | 1 to 2 Lower |
MILK:
There is little new news in the market. Any increase in spot prices is short lived, leaving traders bearish. Most trading activity remains confined to short-term activity with little desire to take long-term positions. Milk production continues to increase seasonally, providing sufficient supply for demand. Feed prices are low and are expected to remain that way, making it less expensive to retain lower-producing cows. The fourth consecutive lower trade-weighted average on the Global Dairy Trade auction casted a negative showdown on the direction of world prices.
CHEESE:
Traders do not show much excitement if cheese prices increase. The pattern has been that price increases have been short lived. This will not last forever, but it may remain that way through the rest of the year. There is little to provide support to the market and push prices higher over the next months.
BUTTER:
Butter moving to a new low for the year and back to the lowest price since Feb. 26, 2021, does not bode well for the market. The price is 16 cents below the block cheese price and may be an anchor on the whole cash complex. Buyers continue to purchase supplies at lower prices as manufacturers move product to avoid building inventory. Strong exports have had little impact on the market.
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