OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 2 to 3 Higher |
MILK:
Class III milk futures were mostly lower Wednesday, but they bounced back from the lows into the close. Futures did not have any premium built into the market, which did not require a substantial price correction with the decline of the underlying cash. Milk futures are holding close to the cash prices as traders have not been anticipating a trend developing. Most of the activity remains confined to short-term trading in the attempt to take a quick profit rather than establishing long-term positions. The USDA will release the May Dairy Product report Thursday afternoon. The markets will be closed on Friday in observance of Independence Day.
CHEESE:
Cheese demand is steady overall. There are some indications the demand for some varieties is increasing. It has not been enough to turn buyers more aggressive. They will purchase when they need to fill orders and when prices dip lower, but are not willing to chase the market higher to any great extent.
BUTTER:
The butter price is expected to hold support and move higher as we move through the summer. It is unlikely the market will see exceptional price increases unless demand improves. Churning is beginning to slow as the cream supply is less abundant and demand for cream from other Class II products improves.
