OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 7 to 10 Lower |
| Soybean Meal Futures: | $2 to $4 Lower |
| Wheat Futures: | 7 to 10 Lower |
MILK:
The price swings of milk futures this week left everyone on the edge of their seat. This week showed market psychology at its best. Traders were uncertain of what was next, which increased market movement. Futures are expected to be more rational Friday likely waiting for underlying cash to provide direction. If there will be increase demand from Canada due the correction of the Tariff Rate Quota discrepancies, it will take some time before those are realized. It does provide potential for greater exports, which is what the market anticipated.
CHEESE:
The weakness of block cheese does raise a little concern as buyers may have their needs satisfied for the time being. Buyers did not show up for either blocks or barrels Thursday. This may bring sellers to the spot market more aggressively as they will want to sell at the highest prices they can. Prices are not expected to fall apart but a price retracement is possible.
BUTTER:
Price still has not yet found resistance. Lower production and tighter supplies keep buyers aggressive. Now that price has moved to the highest level since 2015, one has to wonder just how high it will go. The job of the market is to find a level at which demand will slow and that has not yet happened.
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