OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Steady to 3 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
Milk futures set back Wednesday on the weakness of block cheese. Milk futures held well despite the decline as maybe traders are a little more reluctant to sell the market as maybe a little change in attitude is surfacing. However, it is too early to tell. Milk production is currently strong with spring flush expected to peak soon. However, with current milk production running above a year ago, plenty of milk is available for demand. More will be available for manufacturing after the next two weeks as schools close for the summer. Milk prices may have limited-upside potential in the near term.
CHEESE:
American cheese inventory increased from the previous month but showed little change from the previous year. This has been the pattern so far this year. Even though milk production has been higher, cheese inventories have not grown with total cheese below a year ago. However, demand has not been good enough to tighten supply due to low price not being reflected in the retail market.
BUTTER:
Butter remains sideways with buyers and sellers comfortable in the current price range. Business is being done without the need for either buyers or sellers to be aggressive. Churning is active, keeping supply readily available for demand. The inventory is higher than a year ago, but at a comfortable level.
