OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 4 to 6 Lower |
MILK:
Trading activity took place in all Class III contracts through the end of the year, with prices mixed. Trading volume was light, but it is unusual to see activity spread over multiple months after a three-day weekend. Traders see limited price direction from the spot market. USDA will release the May Milk Production report Monday afternoon. I estimate milk production to be 2.4 percent higher than in May 2025. I estimate cow numbers to increase by 6,000 head from April.
CHEESE:
Cheese prices are expected to be choppy with little direction. Cheese production is strong, and milk is available. This combination provides sufficient cheese to the market, limiting the need for buyers to be concerned about supply.
BUTTER:
Butter futures took a hit last week following the weakness of the spot price. Cream supplies have tightened somewhat, but the supply remains sufficient for demand. Manufacturers continue to offer supplies on the spot market to avoid building inventory.
