OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 4 to 6 Higher |
MILK:
Class III milk futures continue to push higher with the price outlook though the rest of the year improving immensely. This could change rapidly once buyers have sufficient supply on hand for expected upcoming demand. For now, there is support under the market as end of the year demand improves. The Global Dairy Trade auction trade weighted average price was unchanged from the previous event, which is positive to world prices. New Zealand milk production in the current season is tracking behind last year. This, combined with lower milk production is other regions, should keep global dairy prices higher than last year. Milk futures should trade slightly higher Thursday prior to spot trading in anticipation of steady to higher cash.
CHEESE:
The weakness of barrels Wednesday is likely to be erased as buyers continue to look to increase ownership of product. However, upside potential for prices may be limited unless there is a greater improvement of demand. Fresh production as well as inventory will need to be absorbed to pull stocks down lower than a year ago.
BUTTER:
Price is stuck in a range and does not seem as it will break out of that range through the rest of the year. Sellers continue to offer supply to the market satisfying the needs of buyers. Buyers continue to purchase without having to chase the market higher. Inventory is decreasing, but there is still sufficient supply available to satisfy demand.
