OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | Steady to 10 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 8 to 13 Lower |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 1 to 3 Higher |
MILK:
The weakness in the spot market Tuesday was not kind to milk futures. There is little anticipation underlying prices are going to change much in the near term. The hope is that they do not decline much further. USDA will release the May Milk Production report on Friday, which will show continued strong milk production. It is not a matter of an oversupply of milk to the market, but more that demand is being easily satisfied. The key on the report will be cow numbers. If cow numbers continue to increase even with high grain prices, then it may be an indication that milk production will continue to remain strong. Traders will be cautious Wednesday until direction is seen from spot trading.
CHEESE:
Cheese production continues to remain strong and is easily supplying the market with product. Buyers have been able to purchase sufficient supply in the country and on the daily spot market to fill orders and build inventory for upcoming demand. Prices are expected to remain in a range.
BUTTER:
Butter price has been floating along without trending either higher or lower. Even though export interest has been very strong, production has been sufficient to meet both domestic and international demand. Churning has slowed a little but remains strong. The market is balanced for the time being.
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