OPENING CALLS:
| Class III Milk Futures: | 20 to 40 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | 8 to 11 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Class III milk futures have come under substantial pressure over the past two days and it looks to continue Wednesday unless buyers become more aggressive in the spot market. The June contract falling below $20.00 again is incredible as at the end of last week it had a price about $1.50 higher. Traders turned negative after the milk production report showed production holding better than anticipated with production per cow increasing by 9 pounds. Cow numbers are lower but production per cow is making up for some of the losses. Class IV futures showed gains while Class III futures fell widending the price gap again.
CHEESE:
There were unfilled bids for loads of blocks at the close of spot trading Tuesday. However, those buyers may lower those bids Wednesday as they see weakness in the overall market. They may wait to see how aggressive sellers will be. Cheese production is increasing as more milk is being diverted to manufacturing as schools close for the summer.
BUTTER:
Butter is the opposite of cheese with demand steady and showing signs of improving and buyers aggressively looking to increase ownership for demand later in the year. It is uncertain as to how much more aggressive buyers will be but the strength early in the year could result in the record high price of last year being exceeded this year. USDA will release the April Cold Storage report Friday, showing the level of inventory compared to the previous year.
