OPENING CALLS:
| Class III Milk Futures: | 4 to 10 Lower |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 8 Lower |
| Soybean Futures: | 10 to 15 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 5 to 7 Lower |
MILK:
Cheese prices bounced Wednesday, but that did not change the weakness of futures. The overriding factor of the Milk Production report showing continued strong gains in production kept traders on the defensive. Underlying cash will need to prove itself that it will trend higher before futures will rebound. The market is due for a correction technically, but it will be up to underlying cash to provide support for that to happen. Lower grain prices continue to keep some bearishness in the market as it will keep milk production strong. USDA will release the May Livestock Slaughter report Thursday afternoon. It will not be a market-mover but will provide the numbers for comparisons for dairy cattle slaughter.
CHEESE:
The rebound of cheese prices Wednesday failed to provide the needed support to move milk futures higher. Spot prices will need to prove themselves by continued gains before traders will get excited over a change in trend. Strong cheese production leaves plentiful supplies available to the market. This leaves buyers complacent and purchasing on an as-needed basis.
BUTTER:
The weakness in butter may be intensifying as price has now fallen below the sideways trading range it has been in for a period of time. Although inventory at end of May was large, the increase from April was by no means bearish. It appears price will not reach $2.00 anytime soon as some have suggested it would.
