OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 5 Lower |
| Soybean Futures: | 4 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 8 to 9 Lower |
MILK:
There is not much change expected in the market anytime soon. Fundamentals remain similar to what they have been over the past months. The weather has had some impact on milk production, but mainly it has been confined to finishing the spring flush milk volume. Butterfat has been impacted to some extent, but it remains above the level of a year ago. Milk production has remained above last year and is expected to remain higher through the rest of the year. Trading activity is expected to be light ahead of spot trading.
CHEESE:
The upside price potential in cheese is likely limited. Strong cheese output is keeping pace with demand. Plants continue to sell cheese on the spot market to limit building inventory. Cheese production later this year is expected to keep pace with demand without tightening supply.
BUTTER:
The large volume of butter traded on the spot market last week keeps demand satisfied. Plants are avoiding building inventory. Buyers are purchasing for immediate needs and to increase ownership for later demand. Strong butter production is keeping the market balanced. Strong demand should support the price.
