OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 6 to 7 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 8 to 10 Lower |
MILK:
The major reports for the dairy industry are now history for another month. The milk production report showed strong milk output and increasing cow numbers, continuing the bearish trend. The cold storage report was neutral, indicating good demand as inventory has not increased much despite strong production. The livestock slaughter report showed dairy cattle slaughter maintaining a slower pace. Traders have little else to focus on outside of daily spot trading. There is little reason for traders to get excited over the market for higher prices.
CHEESE:
Cheese inventory increased in May, but at a much slower pace than usual for that time of year. This keeps cheese inventory somewhat in line with a year ago despite higher cheese output. This indicates good demand. However, strong domestic and international demand has not been good enough to tighten supply.
BUTTER:
Butter has had a nice bounce over the past two days, and there is a good chance a further gain will be seen Friday, as there were quite a few unfilled bids at the close of spot trading on Thursday. However, the strength may not continue for very long. Higher prices may bring sellers back into the market more aggressively.
