OPENING CALLS:
| Class III Milk Futures: | 2 to 4 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 3 to 6 Lower |
MILK:
Traders do not seem to be excited over cheese prices finding a bottom. It had been anticipated that the lower prices would increase buyer interest, but that has not yet been the case. There is a sufficient supply of cheese available to the market. Manufacturing plants are moving supplies to the market rather than holding and building inventory. It is the first day of summer and hotter weather is in store for many areas, which will have an impact on milk production and component levels. The May Milk Production report will be released this afternoon. Milk production is expected to be higher than a year ago. I estimate production to be 1.4% higher than a year ago and cow numbers to be 3,000 head more than in April.
CHEESE:
Cheese prices may struggle again today as buyers will hold back to see if sellers remain aggressive. The price is not low enough to cause buyers to turn aggressive. They have a sufficient supply on hand for immediate needs and are not concerned about supply later in the year.
BUTTER:
The recent price retracement in butter may be sufficient to increase the buying interest. Retail butter demand is steady to stronger, and the price is expected to trend higher. The cream supply is not as abundant as it has been, and hotter weather will reduce the butterfat component of milk.
