OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 3 to 4 Lower |
MILK:
Overnight Class III milk futures were stronger in nearby contracts and weaker in later contracts. Activity was good with over 200 contracts traded in May and over 100 contracts in June and July. There was no significant fundamental change over the extended weekend, with traders anticipating further support in underlying cash. Milk production should continue to increase seasonally as the spring flush continues.
CHEESE:
Cheese demand has been good, resulting in an increase in inventory at a lower pace than a year ago. This continues to provide support to cheese prices. However, that support may be limited as buyers in the spot market may reach a threshold. Cheese production is higher than a year ago as higher milk receipts are increasing cheese production schedules.
BUTTER:
The butter price is floundering as sellers continue to offer supplies to the spot market. Buyers have not had to be aggressive and have been able to purchase substantial volumes of butter for improved demand, as well as to put into inventory in some cases. However, inventory remains significantly lower than a year ago, but that is not impacting the price.
