OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 15 to 20 Lower |
| Soybean Futures: | 25 to 35 Lower |
| Soybean Meal Futures: | $5 to $7 Lower |
| Wheat Futures: | 30 to 35 Lower |
MILK:
The strong movement of milk futures was a surprise Thursday. Traders are bullish and the milk production report was the catalyst to trigger buying interest. With some contracts closing limit up, there are expanded trading limits Friday, but it appears that they will not be needed. New contract highs were made in May and later Class III contracts. The same could not be said for Class IV futures with only May making a new contract high. Strong grain prices also had an influence on milk futures early in the day, but grain futures fell back substantially into the close. Grain futures are under substantial pressure Friday. Milk futures may trade lower until further direction is seen from spot trading.
CHEESE:
Block cheese price was able to move above $2.00 for the first time since Jan. 12. The overall trend of block cheese has been higher, but with substantial volatility since the low that was established in early June 2021. There is sufficient production and supply of cheese to meet demand at the present time. Demand will need to hold, or reduced milk production would still be sufficient.
BUTTER:
Price was anticipated to see more strength Thursday as buyers might be more aggressive with purchases to increase ownership for further in the future. Price was only moderately higher with sellers willing to move product. Spot price is expected to show further strength Friday.
