OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Higher |
| Soybean Futures: | 5 to 8 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 18 to 22 Higher |
MILK:
Class III milk futures were lower Friday in response to the weakness of barrel cheese. Futures are hovering near the top that had been set in March and April with optimism still evident after the release of the milk production report last week. Traders may be cautious prior to spot trading Monday as blocks provide no indication as to direction. There is hope that stability in blocks on Friday will provide support for barrels, bringing price back up. Milk production continues to increase seasonally, but at lower levels than a year ago. There is sufficient supply for demand with the anticipation of more milk becoming available on the spot market as schools close for the summer.
CHEESE:
USDA will release the April Cold Storage report Monday. American cheese inventory will be the one to watch to see whether it increased from March. So far this year, American cheese inventory has declined on a month-over-month basis. The report could either compliment the milk production report or offset it, which could keep the market choppy for a time.
BUTTER:
Price made an impressive run higher last week. It is possible the strength may be near to running its course for the time being. Buyers may have picked up sufficient supply to fill orders as well as for later demand. If there has been strong growth on the Cold Storge report, price may stall for a time.
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