OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Higher |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Lower |
| Soybean Futures: | 7 to 9 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | Mixed |
MILK:
The past two days have been positive for milk futures as traders reacted to the strength in underlying cash. Traders were initially reluctant to buy milk futures as the market needed to prove itself before they would believe higher prices would unfold. The strength in the underlying cash seems to have provided that confidence. However, traders remain cautious as Class III milk futures did not increase as much as expected due to the significant increase in the block cheese price. Today is the last trading day for the June contracts, with the Federal Order prices to be announced on Wednesday. The average soybean meal price for May will be released, providing the final price needed to calculate the income over feed for the Dairy Margin Coverage program.
CHEESE:
Cheese prices are expected to show more strength as the increase of the past few days may increase the buying interest from those who had been holding back and purchasing on an as-needed basis. Hopefully, this will be seasonal buying that may continue for a longer duration.
BUTTER:
The butter price closed above the sideways range it had been in for about a month. The uptrend may resume as demand is steady to stronger and cream supplies are not as abundant as they have been. There is sufficient cream available, but there is more demand for Class II products. This is reducing the amount available on the spot market, resulting in higher cream multiple prices.
