OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 6 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 6 Lower |
| Soybean Futures: | 6 to 9 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | Mixed |
MILK:
Traders did not receive any indication as to further direction for the market on Tuesday. Steady spot prices for cheese and butter may either indicate support or resistance. The current level of milk production is sufficient for demand. Sufficient supplies may limit the upside potential for prices. More milk moving to bottling over the coming weeks is not expected to tighten the supply and raise prices. Consumer demand will need to improve to keep up with increased milk production when cooler weather arrives. Traders continue to trade only for the short term rather than establish long-term positions. The June Federal Order class prices will be announced Wednesday afternoon. The trade anticipates a Class III price of $15.63 and a Class IV price of $18.49.
CHEESE:
Cheese prices seem supported but may have limited near-term upside potential. Buyers seem to have sufficient supplies on hand and remain comfortable purchasing on an as-needed basis. Price declines allow them to purchase more for building inventory. Demand will improve as the year progresses, but whether it will follow the usual increase is uncertain.
BUTTER:
It would seem that the butter price would find support at the current level as churns are operating on five-day weeks. Cream supplies have tightened with the production of Class III products utilizing a significant volume of cream.
