OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | Mixed |
MILK:
Milk futures continue to struggle. Strength in spot prices has been short-lived. After a bounce higher in spot prices, they have generally fallen back to lower prices. The strength in spot cheese and butter Wednesday resulted in lower milk futures prices. There is little reason for spot prices to increase as supplies are sufficient for demand, and production remains strong. Cow numbers continue to increase, as improved genetics and management increase the longevity of cows in the herd. USDA will release the May Livestock Slaughter report Thursday, which is expected to show slaughter following along seasonal lines.
CHEESE:
The block cheese price has increased over the past 2 days, but is expected to have limited further upside potential. Buyers will reach a threshold of what they are willing to pay in a market that has sufficient supply. USDA will release the May Cold Storage report Thursday afternoon, and it should show inventory near the levels of a year ago.
BUTTER:
There was limited interest in buying and selling during spot trading, but one buyer was aggressive, bidding the price up 5.00 cents to purchase a load. The higher price may increase seller interest Thursday as butter supplies remain plentiful and manufacturers do not want to build inventory at the plant level.
