OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 3 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 2 to 4 Lower |
MILK:
There is not too much expected for price movement in milk futures prior to spot trading. Market fundamentals have changed little over the past week. Overall milk production is strong and should remain that way for the near term. Feed prices have become less expensive, which will ensure continued strong milk production. Crops have been planted in a timely manner, which should result in good yields if weather remains average. USDA will release the April Agricultural Prices report Friday afternoon. It is expected to show a significantly lower income over feed due to the steep rise of corn and soybean meal prices relative to the All-milk price during the month. Markets will be closed on Monday for the observance of Memorial Day.
CHEESE:
Cheese prices may have limited upside potential in the near-term as more milk is becoming available for manufacturing. Some plants will be running on full schedules this holiday weekend in order to process the milk and to take advantage of significantly lower priced spot milk.
BUTTER:
Price is expected to continue to chop within a range. Buyers are interested in purchasing ahead for expected upcoming fall demand and would like to increase inventory. Higher prices bring sellers to the market more aggressively as supply is readily available and plants do not want to hold large inventory. This should keep the market balanced.
