OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Steady to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Higher |
| Soybean Futures: | 15 to 20 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 4 to 8 Higher |
MILK:
Milk futures are having a difficult time moving higher despite the strength of barrel cheese the past two days. Traders remain cautious as this has happened before that there has been a rally of a few days only to fall back once buyers have been satisfied. With plentiful milk supplies and increasing cheese production, there is little reason for buyers to be aggressive. Hot weather is on tap for about the next week, which will have some impact on milk production. It may not be enough to tighten the market and it may not be long enough to have long lasting impact on the lactation curve. USDA will release the May Federal Order class prices today that were delayed due to the holiday.
CHEESE:
Cheese prices diverged for a second day. Continued weakness of blocks may pull barrels back down again as it has done in the past. Sellers continue to offer product to the market unwilling to hold back in anticipation of a price increase. Increasing cheese production will keep supply readily available to the market.
BUTTER:
Butter price is stable and is expected to remain that way. Cream supply is tighter, but available keeping churning active. Butter futures continue to carry a premium to current cash in anticipation of greater strength, but a balanced supply and demand may leave this market sideways.
