OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 4 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 6 to 8 Lower |
MILK:
Class III milk futures have been able to hold much of the gains over the past two weeks but have turned choppy again. Milk production is increasing, and more milk will move to manufacturing over the next few weeks as schools close for the summer. This will increase cheese production, keeping the market supplied. This may limit the upside price potential. The crops are being planted at a fast pace, with USDA indicating 62% of the corn has been planted as of May 11. This is 15% ahead of last year. Soybeans are 48% planted and 14% ahead of last year. If crop conditions are good during the growing season, feed supplies should be plentiful at reasonable prices.
CHEESE:
Cheese prices may move sideways after the rebound over the past two weeks. There is sufficient supply available for demand, with cheese production increasing due to higher milk receipts. Most plants are running on full schedules. Spot is available with prices as much as $7 below class.
BUTTER:
The price has moved to the top end of the range it has been in since late February. The price might be poised to move above that range, but the upside potential might be limited near term. Consumer demand is showing signs of improving, but not enough to trigger more aggressive buying interest on the spot market. The price should trend higher through the summer.
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