OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 10 to 15 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 2 to 3 Higher |
MILK:
Milk production continues to roll along, exceeding last year's level. Hot weather is affecting milk production, but it is not expected to tighten the milk supply enough to cause shortages for bottling and manufacturing. Farms have done a significantly better job keeping cows cool and improving feed intakes during the summer. Milk production is expected to exceed that of a year ago throughout the rest of this year. Spot milk supplies are expected to tighten, and prices are expected to increase as manufacturers look for extra supply to maintain production schedules and plant efficiency. However, the increase in spot prices may not have much impact on milk prices. The June Federal Order class prices will be announced today.
CHEESE:
Cheese prices are expected to have limited upside potential for the time being. Manufacturers do not want plant inventories to build and will move them to the spot market. This may leave buyers less aggressive as they do not see supplies tightening anytime soon. Cheese prices may remain choppy.
BUTTER:
It seems there is greater interest from buyers to purchase butter for upcoming demand. That may provide support to the price. However, churning is active, and supplies are sufficient. Manufacturers want to limit building inventory and continue to offer loads on the spot market. Hopefully, demand will increase, and buyers will remain aggressive.
