OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 10 to 15 Higher |
| Soybean Futures: | 30 to 45 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 15 to 20 Higher |
MILK:
Milk futures remained under pressure Thursday due to the weakness of cheese and nonfat dry milk. Nonfat dry milk does not have any direct influence on Class III prices, but it did put pressure on Class IV futures. A better weather forecast along with a few other issues drove grain futures substantially lower Thursday with soybean making a one-day historic decline. If a top has been established in the market with lower prices from grain as the year progresses, milk production will remain strong, limiting price potential. USDA will not release the May Milk Production Thursday as I had indicated Thursday, but it will be released on Monday. Please make a note of it. Trading is expected to be light until direction is seen from spot trading.
CHEESE:
If barrel cheese declines further, it will move price back to the lowest level since April. Buyers of cheese see no reason to be aggressive and are able to increase ownership to fill orders or build supplies for later demand. This may limit price potential later in the year when demand increases seasonally.
BUTTER:
Grade A nonfat dry milk price moved to the lowest level since April 21. this put pressure on Class IV futures, resulting in double-digit losses. Butter continues to move in a sideways trading pattern. Not much is expected during spot trading Friday
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