OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 4 Lower |
MILK:
The limited strength of Class III milk futures may not follow through today unless spot cheese prices increase. This may be a tall order under the current market fundamentals. If underlying cash prices remain choppy and buyers and sellers conduct business without fanfare, milk futures will roll down as they approach expiration. Seasonal buying should provide support to the market, but buyers have been able to purchase what they need without difficulty. The average soybean meal price for June will be released today, providing the missing price for calculating the income over feed price for the Dairy Margin Coverage program.
CHEESE:
Cheese has been unable to rebound due to a sufficient supply available for demand. Cheese production is steady, with output meeting contractual needs. The excess is being offered on the spot market to limit plant inventories. Buyers are comfortable with current supplies and see no reason to be concerned over future supplies.
BUTTER:
Each day that goes by limits the price potential for the rest of the year. Buyers have been able to purchase supplies without difficulty. The cream supply has decreased, but remains sufficient for demand. The spot price is expected to remain rangebound.
