OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 2 to 5 Higher |
| Soybean Meal Futures: | Steady to $2 Lower |
| Wheat Futures: | 8 to 10 Higher |
MILK:
Stable cheese prices support Class III futures. The Cold Storage report Monday could indicate there might be some weakness of underlying cash which could put some pressure on the market. Cheese certainly is not over abundant. But increasing milk production and more milk becoming available for manufacturing due to schools closing for the summer may reduce the concern over supply. Weather has been good for cow comfort overall. Production is running below year earlier levels but is increasing seasonally, leaving sufficient supply available for demand. Class III may continue to move in the range it has been in since early March.
CHEESE:
Steady cheese prices Monday left traders guessing as to market direction. Prices may have a difficult time moving much higher under current market fundamentals and may consolidate for a time. The increase of American cheese stocks in April may have indicated a slight slowing of demand which may continue during the current inflationary period.
BUTTER:
Price has been trending higher as buyer interest has increased. It seems buyers are again wanting to increase ownership for later demand due to inventory being unable to gain over last year's levels. Even though inventory is increasing, stocks remain 23% below a year ago. Price is 7 cents from the high this year established in January.
