OPENING CALLS:
| Class III Milk Futures: | 8 to 12 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 12 to 14 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Milk futures may rebound somewhat as traders who sold contracts may liquidate those positions to take a profit. Most of the trading activity remains short-term as the uncertainty of price movement keeps traders cautious. Hot weather has impacted milk output, but buyers in the spot market are not concerned about the milk supply. USDA estimates significantly higher milk output in 2027. Dairy processors expect continued strong milk production and are either expanding or building new facilities. The trend of higher milk output and increased cow numbers remains intact at the present time.
CHEESE:
Cheese prices may see further weakness following a similar pattern as the previous time the market fell back from the high. Buyers may hold back as they see the willingness of sellers to move supplies.
BUTTER:
There are indications cream supplies are tightening. Other Class II manufacturers are utilizing higher volumes of cream, limiting the availability of supply to churns. This has some manufacturers turning to the spot market for supplies. Tighter cream supplies have increased cream prices. This should support the butter price at some point.
