OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Lower |
| Soybean Futures: | 10 to 16 Lower |
| Soybean Meal Futures: | $1 to $3 Lower |
| Wheat Futures: | 4 to 6 Lower |
MILK:
The bearish implications of the April Milk Production report could have a significant impact on the market. Ultimately, the direction of milk futures will be determined by spot cheese movement Friday. The influence of the Milk Production report could extend further than the activity in milk futures. It could have an influence on the willingness, or the necessity, of buyers in the spot market to be aggressive. It is clearly seen that milk production is not going to slow down or cow numbers decrease any time soon due to higher feed prices. This may leave buyers of cheese less aggressive and sellers more aggressive as they want to move product. Class III futures will respond accordingly.
CHEESE:
It has been a somewhat brutal week for cheese, but the ability of barrels to finally post a gain may indicate the market may be near a bottom. However, the Milk Production report indicates that milk supply will remain strong despite higher feed prices. It will be interesting to see how aggressive buyers will be during spot trading.
BUTTER:
Price continues to hold well supported by strong demand from the food service industry. Retail demand has slowed somewhat but has not had an impact on the overall market. USDA will release the April Cold Storage report on Monday, which will shed some light on supply and demand for the month.
