OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 1 to 2 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 2 to 3 Lower |
MILK:
The strength in Class III futures moved June, July and August to new highs. The July contract moved briefly above $20.00 on Thursday but did not hold at that level. The improved outlook for milk prices will continue to see lower dairy cattle slaughter and increased cow numbers. That does not mean that milk production will overwhelm the market, but it may indicate that the milk supply will be sufficient for demand. Schools are closing for the summer, resulting in more milk being available for manufacturing. The higher availability keeps spot milk prices as much as $7.00 below class in some areas. The markets will be closed on Monday in observance of Memorial Day.
CHEESE:
Cheese buyers have remained aggressive, purchasing what is offered during spot trading and bidding higher for more. The strength has been surprising. Retail demand has been improving, which should absorb the increase in milk production. The April Cold Storage report will be released Friday and will show whether supplies increased or if demand has been able to keep inventory lower than a year ago.
BUTTER:
The butter price is poised to break out of the sideways trading range it has maintained for much of the year. Retail demand is improving and should increase buyer interest in the spot market. Inventory is expected to have increased in April, but stocks may not be much higher than a year ago.
