OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Trading activity is expected to be light ahead of spot trading as traders are uncertain about spot prices. It was anticipated that the lower cheese prices would have found aggressive buyer interest at these levels, but that has not been the case. Increased cheese production due to more milk moving to the vat has increased the supply. Plants want to limit their inventory and move it to the market as needed. USDA will release the May Milk Production report on Friday. It is expected to show higher milk production than the previous year. The markets will be closed on Thursday for the Juneteenth holiday.
CHEESE:
Buyers are willing to purchase cheese but only at their price. There has been no interest in and little need to bid higher to obtain cheese for immediate demand or build aging programs. Cheese inventory remains below a year ago, but buyers are not concerned about supply.
BUTTER:
The decline of the butter price has not changed the trend. Buyers are expected to remain aggressive even though sellers offer substantial supply to the market. Demand is steady to stronger, and buyers are looking ahead to the demand later this year.
