OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 6 Higher |
| Soybean Futures: | 10 to 14 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 35 to 70 Higher |
MILK:
Milk futures flopped around Thursday with traders running back and forth trying to make sense of it. The market is basically unaffected by what is driving the rest of the financial and commodity markets directly. The impacts will be seen in the longer term. Traders are bullish but the weakness that continues to pop up at times in underlying cash results in some reassessment of overall strength. There is generally a strong correlation to corn prices, which should keep support under milk prices. However, there may be a level at which demand could slow due to inflation in general and the high price of fuel. Milk production is below a year ago, but supply is sufficient for current demand. Trading activity is expected to be light ahead of spot trading.
CHEESE:
Block cheese is nearing the high of $2.0650 it reached on Jan. 5. There is concern price could fall back similarly to what took place last time, but the decline would likely be limited. There have been a few reports of slight slowing of demand, but overall, demand is holding well. Production is keeping up with current demand with some slight building of inventory.
BUTTER:
Butter price is far below world price but that does not mean it will move much higher anytime soon. Exports have been strong but continue to face some difficulties getting it moved out of the country. Domestic demand has been strong with buyers purchasing ahead. Much of the buying for the Easter season has already been accomplished and shipped in order to compensate for delays. Buyers have been reaching out to cover expected needs for the third quarter.
