OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 5 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 4 to 8 Higher |
MILK:
Class III futures have declined so far this week, but not as much as would have been anticipated given the weakness of cheese prices. Some of the decline was already factored in with some support stemming from ongoing optimism. Class IV futures have strengthened during the week with ongoing support from butter and nonfat dry milk. Milk production is either holding steady or continuing to improve, depending on the location in the country. Reports are that components are good and in some cases above year-ago levels. The school year is winding down with nearly all schools being closed by the end of next week. Manufacturing is receiving more milk. Markets will be closed on Monday for the Memorial Day holiday.
CHEESE:
The action of spot cheese trading Thursday does not suggest a rebound in prices Friday. Spot prices could be steady or mixed as prices may be low enough to establish a level at which buyers will be interested in purchasing more aggressively. More milk available for manufacturing will put more cheese on the market. However, increased production will not overwhelm supply.
BUTTER:
The slight weakness of spot butter Thursday could open the door for further decline as buyers may step back a bit as the buying frenzy may have run its course for now. Food service demand is holding well while there is some weakness seen in retail demand. Butter futures hold a discount to cash.
