OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 2 to 3 Higher |
MILK:
It has not been a good week for milk futures. Class III futures moved to new contract lows Wednesday. Class IV futures have eliminated most of their recent gains. Spot prices have not provided support to futures. It seemed as if seasonal buying may have surfaced for butter, but that does not appear to be the case. Demand is good, and buyers are active, but sellers continue to offer supplies to the spot market. Milk supplies are sufficient for demand, with spot milk available to manufactures at reasonable prices. There is little concern over tightening milk supplies through the summer. The USDA will release the May Dairy Products report Thursday afternoon showing the amount of dairy products produced during the month.
CHEESE:
Cheese prices remain in a range with little fundamental reason to break out of the range. Demand is steady and production is steady. The Dairy Product report is expected to see higher production than a year ago. According to the May Cold Storage report, if cheese production is higher, then demand has absorbed the increased production as inventory remains in line with a year ago.
BUTTER:
The butter prices have declined over the past two days, but the decline has been minimal despite a large volume of loads trading on the spot market. Buyers are willing to purchase what is coming to the market without being aggressive.
