OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 8 to 12 Lower |
| Soybean Futures: | 8 to 15 Lower |
| Soybean Meal Futures: | $5 to $6 Lower |
| Wheat Futures: | 4 to 8 Lower |
MILK:
The bulls came out in force Wednesday in anticipation of higher cash prices, and after that came to fruition, futures pushed further to the upside. Some contract moved limit up for a period of time during the day, but no contracts closed at that level. Overnight trade was virtually nonexistent and a bit unusual after such a strong day. Generally, there is more follow through in the overnight as traders that were not paying much attention to price movement Wednesday make decisions as to what to do and do it at night. Those who have been bullish on milk prices due to high feed prices may be assessing their outlook as corn prices fell significantly Wednesday and show further losses overnight. However, a change in weather forecast can change all that again. The prospect for higher milk prices will keep production strong. USDA estimated increased production on the World Agricultural Supply and Demand report Wednesday.
CHEESE:
The buying interest for cheese during spot trading was impressive. It is unclear as to why buyers were so aggressive. There is sufficient supply for demand with inventory increasing. However, orders need to be filled for fresh cheese and requires buyers to come to the spot market at times to purchase what is available. Cash is expected to be steady Thursday.
BUTTER:
Price is working back up toward the high set back on April 12. However, it is unlikely it will reach that level anytime soon. Supply and demand seem balanced at the present time, which may keep the market choppy. The recent strength may have run its course with a possible price retracement again.
