OPENING CALLS:
| Class III Milk Futures: | Steady 6 Lower |
| Class IV Milk Futures: | 10 to 15 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | 2 to 8 Higher |
| Soybean Meal Futures: | $1 to $3 Lower |
| Wheat Futures: | Mixed |
MILK:
Class III milk futures have been under substantial pressure taking closer months down to the lowest level they have been since late March. Later contracts have fared much better as they are not rising and falling as closely with grain prices. Cheese prices have been unable to find support, which has dragged milk futures lower. Traders are dealing with the numbers from a bearish Milk Production report and a friendly Cold Storage report, keeping them somewhat in a quandary. For now, as long as there is weakness in cheese and now potentially some weakness in butter, milk futures might remain under pressure for a period of time. Corn is 90% planted, according to the weekly Crop Progress report this is an increase of 3% over last year and 10% above the five-year average pace. Soybeans are 75% planted and 12% above a year ago and 21% above the five-year average.
CHEESE:
The decline of cheese in inventory for the month of April from March is considered friendly. It is difficult to make a comparison to last year due to many areas of demand being shut down and the industry in a turmoil. This will leave market direction up to spot prices. Cheese buyers see sufficient supply right now and are willing to purchase, but at lower prices.
BUTTER:
The decline of butter Monday is likely just a day of the market when sellers were just more aggressive and not a change of trend. The significant amount of business is of greater concern as this may indicate sellers want to move product over concern of price weakness.
