OPENING CALLS:
| Class III Milk Futures: | 10 to 30 lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 8 Higher |
| Soybean Futures: | 1 to 3 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 14 to 18 Higher |
MILK:
Traders reacted to the bearish implications of the May Cold Storage report released Thursday. Futures immediately fell 20 to 40 cents. However, that was not reflected in the close Thursday due to the CME settling the market shortly after 2 p.m. CDT as is the standard for markets that trade until 4 p.m. CDT. However, this set the stage for lower overnight futures with September down as much as 49 cents at one point. This negativity may be difficult to overcome unless support is found from underlying cash. Lower milk production has not had the impact on supply as had been anticipated. Sufficient milk is available for demand with excess moving to inventory. Some of that inventory may be committed for orders later this year, but it is still inventory that will satisfy demand while limiting the need for buyers to be aggressive later.
CHEESE:
American cheese stocks at the highest level they have been since 1985 and total cheese stocks at the highest level in over 42 years and possibly at a record high does not bode well for price potential the rest of the year. This may keep cheese prices subdued and solidify the idea that the highs have been established for the year.
BUTTER:
Butter is in a better position for maintaining higher price. Inventory increased in May, moving it back to the highest level since September 2021, but it remains 22% below a year ago. Supply has not been able to catch to the level of the previous year. It is holding its own but not gaining.
