OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 12 to 18 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 15 to 20 Higher |
MILK:
Milk futures have lost a lot of ground over the past few weeks. Underlying cash prices have been trending lower. This has been a disappointment for those who have been bullish. There was anticipation of a further contraction of milk production with demand remaining strong. The milk production report Tuesday showed milk production lower than a year ago but also the second smallest decline for the year at 0.7% lower. March showed the least decline at 0.4% below the previous year. Production per cow increasing 8 pounds is significant. Over the past year, there have been three months during which production per cow was lower than the previous year. Those months were August, September and January. Futures are expected to trade mixed ahead of spot trading.
CHEESE:
It is uncertain whether cheese prices are low enough where buyers will become more aggressive. That will depend on the level of demand moving forward. Right now, buyers just do not need to be aggressive. They already have some purchased ahead and they do not see tightening supply.
BUTTER:
Price has declined four consecutive days. Buyers do not feel the need to be aggressive at the present time. With the weakness, buyers may hold back in anticipation of further weakness. However, price weakness may be limited due to inventory being significantly below a year ago. USDA will release the May Cold Storage report on Thursday.
