OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 10 to 15 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 10 to 12 Higher |
MILK:
USDA was somewhat bearish on their estimates for milk prices and dairy product prices on the World Agricultural Supply and Demand report released Thursday. Price estimates for 2022 were lower even though they lowered their estimate for milk production. These are only estimates, but that is not good news with the fact that the report was bullish for grain prices. Current milk production is sufficient for increasing fluid demand to fill school pipelines as well as manufacturing needs. This is keeping a lid on milk price potential. Milk futures may trade steady to lower until further direction is seen from spot trading Friday.
CHEESE:
Block cheese seems to have more support than barrels even though there has been some discussion that processors indicated they may have difficulty meeting demand later in the year. At the present time, that does seem to be a valid report. Block price has moved to the highest level since May 13.
BUTTER:
The direction of butter will continue as it has been for quite some time. Production has been able to meet demand and inventory remains quite large. There is plenty of inventory to tap into once demand exceeds production. This will limit upside price potential for some time to come. Ice cream production is slowing allowing for more cream to be available to the market.
