OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 8 Higher |
| Soybean Futures: | 8 to 14 Higher |
| Soybean Meal Futures: | $1 to $3 Higher |
| Wheat Futures: | 6 to 9 Higher |
MILK:
Milk futures were under pressure the past two days following cheese and butter prices lower. June milk is on the verge of dropping below $16.00 again, where it had been last week. Milk production remains strong, dairy product production remains strong, and schools closing for the summer keeps pressure on the market with limited upside potential when there is strength. Dairy cattle slaughter has not yet increased despite high cull-cow prices and low milk prices. Demand will need to increase and/or production will need to decrease for the market to find support and trend higher. The markets will not be open Monday due to Memorial Day but will resume trading at the usual time Monday night.
CHEESE:
It has been disappointing that cheese prices were not able to extend the price rally for more than three days. The gain has nearly been eliminated as buyers have stepped back, waiting for sellers to offer cheese lower. Low bids are placed early during spot trading, indicating buyers are not aggressive. Sellers then need to lower offers if they want to move any product or they will go home without any sales.
BUTTER:
Price has remained in a sideways pattern for five months, setting a record. There is no indication price will break out of the range any time soon. Churning remains active, keeping supply plentiful. Cream is expected to tighten next month as weather will impact butterfat and ice cream production will increase utilizing more cream. However, that still may not impact price as supply and demand are balanced.
