OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 5 Higher |
| Soybean Futures: | 6 to 9 Higher |
| Soybean Meal Futures: | $3 to $5 Lower |
| Wheat Futures: | 2 to 5 Higher |
MILK:
Class III futures made a significant rebound Thursday, following the strength of cheese prices. Cheese buyers took advantage of the dip of prices to further increase ownership of cheese for future demand. Class IV futures moved in the opposite direction, seeing significant losses as both butter and nonfat dry milk spot prices declined. Even though the outlook for milk supply has improved due to a substantial increase in cow numbers from February, buyers and sellers are doing business as they need to from day to day. Milk futures may see further upside moving into the weekend as demand remains strong from both bottling and manufacturing. Dairy cattle slaughter during the first quarter of the year totaled 825,000 head, down 2.3% from the same period last year. The governor of Oregon signed into law a bill requiring farmers to pay workers time and a half after 55 hours beginning in 2023 and incrementally dropping to 40 hours in 2027. This may create significant hardships for some as farmers adjust to the law. This may be something that could continue to be implemented in other states.
CHEESE:
Buyers may remain aggressive Friday as the rebound of prices could cause further buyer interest as they want to take advantage of the price dip. Cheese prices could remain sideways at best as supply and demand may be more balanced at the present time. International demand remains strong with U.S. dairy products competitive on the world market. USDA will release the March Cold Storage report. The area to watch will be whether American cheese inventory will increase from February.
BUTTER:
Price fell to the lowest level it has been since March 4 and poised to break below the bottom of the sideways trading range. Churning remains active with sufficient cream available even though ice cream production is increasing. Butter inventory is expected to increase from February on the report Friday.
