OPENING CALLS:
| Class III Milk Futures: | 2 to 4 Higher |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 10 to 12 Higher |
MILK:
Traders remain uncertain over the potential strength of the market moving forward. The spring flush keeps a plentiful supply of milk available for bottling and manufacturing. There is little concern over any supply tightness. Cow numbers continue to increase as some farms expand and some increase cow numbers in current facilities. This trend is not expected to change anytime soon. USDA will release the World Agricultural Supply and Demand report this morning, providing updated balance sheets for grain supplies. It will also contain estimated milk production, milk prices, and dairy product prices for this year. It will also have the first estimates for these categories for 2027. The report is not a market-mover, but provides market potential.
CHEESE:
Cheese prices are not expected to move very much for the time being. Supply and demand seem to be balanced, leaving prices in a tight range. Demand is good, and cheese production is strong. Manufacturing plants are running on full schedules.
BUTTER:
There had been hope that butter had found a bottom and would trend higher. However, that idea faded on Monday as selling pressure weakened the spot price again. However, the focus of traders may be on the nonfat dry milk price. Buyers may have reached a threshold. The price has declined over the past two days, but it did the same near the end of April, only to move to new highs. This will be the market to watch. Further weakness in nonfat dry milk will have a substantial impact on Class IV futures.
