OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 10 to 20 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 5 Higher |
| Soybean Futures: | 9 to 10 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 4 Higher |
MILK:
Class III futures had some minor support on Wednesday from the increase in the block cheese price, but traders were not confident enough to buy futures aggressively. The decline in the barrel cheese price was a surprise, but it may have provided indirect concern for traders. The barrel cheese price has no influence on the calculation of the Class III price. Class IV futures were very strong as the increase in butter and nonfat dry milk prices triggered significant buying interest. The milk supply certainly is not lacking, keeping bottling and manufacturing active. More milk is being diverted to manufacturing as schools close for the summer.
CHEESE:
Cheese supplies remain plentiful. This will continue as more milk is moving to the vat. Cheese inventory is increasing, but remains slightly below a year ago. This is of no concern to buyers as there is sufficient available for demand.
BUTTER:
The increase in the butter price was the largest one-day increase we have seen for a while. Traders remain cautious over the upside potential. Butter futures were higher on Wednesday, but the gains were limited as there seems to be little reason to believe the strength will continue. Sellers may be aggressive in the spot market as they take advantage of the higher price.
