OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 10 to 18 Lower |
| Soybean Futures: | 25 to 35 Lower |
| Soybean Meal Futures: | $6 to $10 Lower |
| Wheat Futures: | 10 to 14 Lower |
MILK:
Traders placed bid and offers overnight and then went to bed. There was no interest in moving those prices to get orders filled. Traders will be looking ahead to the May Cold Storage report that will be released Thursday and may remain somewhat cautious. Steady cheese prices Wednesday did not provide direction. Class III futures were higher as there had been some thought prices may have found a level of support triggering some short-covering. There has been some slowing of demand for both retail and the food service industry but nothing that has been widespread. Milk production is steady at lower levels than last year. There has been no real indication the hot weather has reduced milk output to any great extent.
CHEESE:
Inventory of American cheese will be watched Thursday when the Cold Storage report is released. It had increased on the past two reports after declining earlier in the year. Stocks in April were up only 1% from a year ago for total cheese inventory. Inventory is expected to increase, but the level of increase may provide price direction.
BUTTER:
Butter production is steady with cream supply available despite higher ice cream production. There is currently no lack of supply. However, buyers continue to remain active with both buyers and sellers comfortable at the current price level. Price is expected to remain in a range.
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