OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 2 to 3 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 5 to 7 Lower |
MILK:
The strength of milk futures will continue today in response to the strength of underlying cash on Monday. Traders anticipate further gains as buyers of cheese and butter look ahead to demand as the year progresses. The stronger milk futures prices with new contract highs will keep farmers pushing milk production. The higher prices for replacements will be more readily paid due to the higher milk prices. Culling has slowed and may remain that way as long as the milk price outlook remains positive. The August Class III contract nearly reached $21.00 overnight extending the gains. Today is the last trading day for May futures and options with the Federal Order prices announced on Wednesday.
CHEESE:
Cheese prices may see further gains as buyers may be more willing to purchase and pay for storage for later demand. Even though more milk is moving to manufacturing, inventory is not higher than a year ago. Increasing demand will keep increasing cheese production from building supply. The buying interest on Monday may cause sellers to hold back and wait to see how aggressive buyers will be.
BUTTER:
The butter price is back up to where it was a little over a week ago. The potential is for the price to increase as buyers want to increase ownership. Cream supply is expected to tighten as summer weather impacts milk components and ice cream production increases.
