OPENING CALLS:
| Class III Milk Futures: | 10 to 15 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 5 to 10 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 4 to 6 Higher |
MILK:
The rebound of milk futures was nice to see Thursday with follow through taking place overnight. Traders were quick to react to any strength or stability in the spot market as there had been disbelief that prices fell as much as they had. The anticipation had been, and still is, for tighter milk supply over the next few months or even much of the year. This idea stems from the decline of cow numbers that has been evident since last Fall and the probable continuation of that trend. High feed prices and other increasing costs continue to cut into profitability if there in any depending on the farm. So far, overall milk production has been holding well as the loss of cow numbers is being made up by production per cow leaving milk production down 0.1% below a year ago. Milk futures are expected to remain higher into the spot trading period.
CHEESE:
There is closer spread between blocks and barrels than there generally has been. However, this does not indicate market strength or weakness. Cheese makers indicate that a closer spread is more desirable keeping production steady for both categories. Dry whey continues to lead higher with another new high again Thursday.
BUTTER:
There is no way of predicting the direction of butter Friday. A lower bid and higher offer Thursday left price unchanged. Sellers believe the price is too cheap and buyers think it is too expensive. This could result in a standoff for a time as buyers and sellers try to find value in the current supply and demand environment.
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