OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Steady to 1 lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 6 to 10 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 4 to 6 Higher |
MILK:
Milk futures could not find much support Tuesday as the weakness of blocks and dry whey overcame any bullishness that may have stemmed from a higher barrel price. There is a plentiful supply of milk available to the market, which leaves little reason for buyers to be aggressive. Strong milk output is expected to continue as farms continue to push milk production. Grain futures had a significant increase yesterday, but the close connection that had been seen between corn futures and milk futures may have run its course with traders realizing the correlation and price movement is not immediate. USDA will announce the May Federal Order class prices Wednesday.
CHEESE:
Cheese production is increasing as more milk is moving to manufacturing due to increasing milk production and educational institutions closing for the summer. Demand is strong overall, but there have been reports of some slowing on the retail level. Spot cheese prices are expected mixed Wednesday.
BUTTER:
Butter closed lower Tuesday, but that is not expected to continue. Price has been holding well and is expected to continue to remain in a sideways range near the current level. Strong demand should continue to absorb production and limit inventory build.
