OPENING CALLS:
| Class III Milk Futures: | Steady to 12 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 7 to 12 Lower |
| Soybean Futures: | 10 to 16 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 8 to 12 Lower |
MILK:
Late trading activity in futures Thursday may indicate some pressure prior to spot trade Friday. May and June Class III futures traded 2 and 17 cents lower overnight. It is uncertain why the late pressure came into Class III futures Thursday. Traders may think underlying cash may settle back a bit again. Milk futures may continue to trade within a range for a time as the industry assesses supply and demand. Milk production continues to improve, allowing more milk to be available to the market for bottling and processing. Schools will be closing for the summer over the next few weeks, which will allow more milk to be available for manufacturing.
CHEESE:
The recent strength of cheese may be attributed to orders being placed that need to be filled. Buyers have been purchasing on weakness to increase ownership of supply for later in the year. This is not expected to change, resulting in the market remaining sideways.
BUTTER:
Price seems to be establishing a lower range as it has been consolidating over the past week. There is little anticipation for price increasing much throughout the rest of the year as futures carry a discount to cash through December. Active churning and buyers purchasing ahead may keep price choppy.
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