OPENING CALLS:
| Class III Milk Futures: | 8 to 15 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 5 to 7 Lower |
MILK:
Class III milk futures may have been overdone to the downside with prices likely to correct as traders cover short positions and buy in anticipation of a rebound. Milk production is running along seasonal levels as hot weather impacts output and components. However, milk is available for bottling and manufacturing without any shortages noted. Spot milk continues to run slightly below class, indicating sufficient supplies. The June contract is mostly set and will adjust based on prices released on the weekly AMS reports. Milk prices for June will be much improved over the May prices. The May Milk Production report will be released on Friday.
CHEESE:
Cheese prices may have declined sufficiently to generate buying interest from end users. However, buyers may not be aggressive as they see sufficient supplies available. Cheese production has been keeping up with demand, keeping inventory from exceeding last year's levels. This puts the market in a better position to see inventory decrease through the year's second half.
BUTTER:
The butter price has been chopping around the past few days as buyers and sellers are comfortable at the current price. The market is supported as demand improves both domestically and internationally. Tightening cream supplies may support the market as butter production declines. Inventories are higher than a year ago but at comfortable levels.
