OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 8 to 10 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 1 to 2 Lower |
MILK:
It has not been a good week for milk futures. The weakness of spot prices put substantial pressure on contracts with the most pressure on Class IV futures. The July Class IV contract fell by $1.52 during the first half of the week. The pressure stemmed from the weakness of butter and nonfat dry milk. The nonfat dry milk price has declined $0.15 so far this week. Further weakness is expected Thursday as buyers continue to hold back and purchase at lower prices. Although the spring flush has peaked, milk output remains strong and higher than a year ago. The markets will be closed on Friday for the Juneteenth holiday.
CHEESE:
The block cheese price closed on Wednesday at the lowest level since Feb. 17. This is the time of year prices would generally begin to trend higher as buyers look ahead to upcoming demand and purchase to take advantage of lower prices. This may not be the case this year as higher cheese production is expected to maintain sufficient supply.
BUTTER:
Butter is not expected to see a surge in buying interest. Sellers continue to offer supplies to the spot market. Buyers are purchasing at lower prices with the confidence that supplies will remain plentiful. They see no need to build inventory and pay for storage.
