OPENING CALLS:
| Class III Milk Futures: | 8 to 12 Higher |
| Class IV Milk Futures: | 10 to 15 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 7 to 9 Lower |
| Soybean Futures: | 9 to 11 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 5 to 6 Lower |
MILK:
Traders were active in overnight trade. Futures were higher in the Class III contracts, except for June. Tuesday is the last day to trade June futures and options and the June Federal Order prices will be announced Wednesday. Surprisingly, there were 129 contracts traded in June overnight, as it is a cash-settled contract and mostly priced by the trade. July had over 200 contracts traded, with August over 100. Other contract months also had trading activity. Class IV futures had activity in the September and October contracts. USDA will release the May Agricultural Prices report Monday afternoon. This report will provide most of the prices used in calculating income over feed for the Dairy Margin Coverage program.
CHEESE:
Cheese futures traded overnight in the July and August contracts with July showing most of the activity. The block cheese price is expected to remain choppy. Cheese is readily available to the market with buyers not aggressively picking up supplies to build inventory.
BUTTER:
Butter and nonfat dry milk futures were traded overnight. Contracts were higher as traders seem to think seasonal buying may surface. Nonfat dry milk showed significantly higher prices in the July through December contracts. The upside price potential is uncertain.
