OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 12 to 16 Lower |
| Soybean Futures: | 16 to 20 Lower |
| Soybean Meal Futures: | $6 to $8 Lower |
| Wheat Futures: | 8 to 10 Lower |
MILK:
There was hope Class III milk futures would rebound overnight due to the selling pressure Thursday, even though block cheese price increased. Traders were uncertain placing bids and offers and unwilling to move them. Trading only took place in July and October contracts with prices 2 cents lower and unchanged, respectively. The choppy underlying cash prices are resulting in premium taken out of July and August contracts. Without any price strength in cheese over the next few weeks, July may drop back to mirror the current June price. The May Milk Production report was not friendly to the market as it indicated production remains strong and culling has not yet increased significantly. That may change when the numbers for June are calculated, but those are still unknown. Reports are that more cattle are moving to the sale barns as producers are looking for ways to generate revenue and trim expenses.
CHEESE:
Unfilled bids at the close of spot trading Thursday would suggest cheese prices could move higher Friday. However, even if they do, traders may not even care as price strength has been short-lived and there is no fundamental reason that may not continue. The May Cold Storage report is not expected to provide anything that will change the current trend.
BUTTER:
Inventory is expected to be above a year ago on the cold storage report released Friday afternoon. With current butter production and higher inventory, price may continue to remain in the sideways pattern for an extended period. There is no concern over supply, which is keeping the market in a range.
