OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 8 to 12 Lower |
| Soybean Futures: | 10 to 15 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 6 Lower |
MILK:
It is interesting to see that USDA estimated milk production to continue to increase both this year and next year. Even though feed prices are projected higher, they feel dairy producers will continue to push milk production. If their estimate for production this year at 228.5 billion pounds becomes a reality, it would be an increase of 5.3 billion pounds over 2020 and a new record high. They estimate another 2.6 billion pounds to be added to that for 2022. If grain prices do not move much higher than they currently are, it is unlikely milk production will slow. Milk futures may not see much movement again Friday unless underlying cash prices show a significant change.
CHEESE:
The bounce of cheese prices Thursday may be just that. Traders did not buy the market aggressively but wanted to wait and see whether a higher trend will develop. Recent price bounces have been short-lived, which is keeping traders cautious unless proven otherwise.
BUTTER:
Butter will remain in a sideways price range as buyers and sellers seem to be comfortable near current levels. Supply and demand seem to be balanced. Production is sufficient to meet demand as well as build some inventory. There is little to no concern over supply tightness.
