OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Lower |
| Class IV Milk Futures: | 10 to 15 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 5 Lower |
MILK:
Milk futures have little support with the weakness in the underlying cash. The bounce in the cheese price did not garner much buying interest from traders are it is expected to be short-lived. Milk output is not slowing down and it will not as long as the weather remains good for cow comfort. The April Milk Production report will be released on Friday, indicating the strength of production and the number of cows in the dairy herd. USDA will release the April Livestock Slaughter report Thursday afternoon. The report provides the level of dairy cattle slaughter for the month.
CHEESE:
The bounce in the block cheese price on Wednesday is expected to be short-lived, as there is little reason for buyers to step up and purchase cheese aggressively. Cheese production is increasing as more milk is moving to manufacturing.
BUTTER:
The butter market is dealing with plentiful supplies as churns operate seven days a week. It is not a matter of inventory building substantially, as it remains below a year ago, but manufacturers want to move supplies to the market as quickly as possible and are willing to offer them at lower prices. As long as selling remains aggressive, buyers will hold for lower prices.
