Opening Calls:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
Outside Market Opening Calls:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
Milk:
Milk futures showed they still had a pulse Thursday reacting positively to stronger cash prices. However, the gains were somewhat disappointing as traders are cautious over how much strength the market may exhibit. There is a lot of milk out there and there are more reports of production limits that have been, or are being, implemented. Moving into spring flush is not fun anymore. Sometime in the past, it was rewarding to see the bulk tank levels increase in spring with cows doing well. Now, it may mean lower pay for some of the milk produced over a base or management turns to the best way to limit milk production and remain at, or under, production limits. There is strong demand for dairy, but processing capacity seems to be the limiting factor. Milk futures are expected to trade higher as there is anticipation of higher cash prices on the spot market.
Cheese:
The rebound of cheese prices Thursday should carry over Friday as sellers will likely hold back, hoping buyers will remain aggressive. Orders need to be filled and sometimes the desired amount of fresh cheese may not be available through regular channels in the country. This prompts buyers to come to the dairy spot market. There has not been much of this lately as spot trading has been light.
Butter:
Price has moved above the top of the recent range with price at the highest level since July 2020. U.S. butter is competitive on the world market with exports significantly higher than last year. Churning is active with fresh butter supplies available.
