OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 7 to 10 Lower |
| Soybean Futures: | 2 to 8 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Class III milk futures were able post nice gains Tuesday following the increase of cheese prices. The market might be in the early stages of a price retracement, but that will need to be supported by underlying cash. USDA will release the June Federal Order class prices Wednesday. They will also release the May Agricultural Prices report. This report will provide average prices of many commodities and will show the average prices for corn, alfalfa hay and the All-milk price prices used in the calculation of income over feed. The soybean meal average price is derived from a separate report. The resulting income over feed number will determine whether there will be a payment under the Dairy Margin Coverage program. USDA will also release the Acreage and Quarterly Grain Stocks reports, which may have a significant impact on feed prices.
CHEESE:
Traders remain cautious over just how much strength cheese price may have in the near term. Price increases have been short-lived so far this year, and it will take a steady trend higher before changing that pattern. Demand will need to improve in order to keep supply from building.
BUTTER:
The inability of price to hold at the higher level it moved to during spot trading Tuesday does make the market a bit suspect over much upside strength. However, it also did indicate that buying interest was strong and able to absorb the loads that were offered to the market. Supply and demand seem to be balanced.
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