OPENING CALLS:
| Class III Milk Futures: | 2 to 6 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1Higher |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | Steady to 1 Lower |
| Wheat Futures: | 1 to 2 Lower |
MILK:
The Class III market remains under pressure and may remain that way for an extended period of time. Strong milk production, continued expansions, and increased cow numbers will keep milk output higher than a year ago. More milk is moving to the cheese vat with schools closed. This is increasing cheese production and availability. Class IV futures may remain strong as butter may be supported and trending higher. The May Federal Order class prices will be released Wednesday. The trade anticipates a Class III price of $16.91 and a Class IV price of $22.36.
CHEESE:
Sellers of cheese continue to offer supplies to the spot market to move increased production and limit building inventory. Even though a significant volume of blocks has come to the spot market over the past two days, buyers have been willing to purchase them rather than hold for lower prices. Higher output may be met with increased demand.
BUTTER:
Buyers have needed to step up to purchase due to increased immediate demand, and are also turning their attention to upcoming demand through the rest of the year. If both domestic and international demand remain strong, buyers will need to increase ownership to build inventory for later in the year. This may continue to support the price.
