OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 5 Higher |
| Soybean Futures: | 9 to 14 Higher |
| Soybean Meal Futures: | $2 to $5 Higher |
| Wheat Futures: | Mixed |
MILK:
Class III futures are reaching back up to the previous highs garnering support from increasing cheese prices. Continued strength in corn futures provides some element of optimism as there is a strong correlation between corn and milk. Continued higher feed prices may limit any growth of milk production and may even see the contraction of production if heavier culling continues. End users fear milk supply could tighten as the year progresses if increasing feed prices exceed the increase of milk prices. Thursday is the last trading day for the week with the markets closed on Friday. Trading will again resume on Sunday night.
CHEESE:
Cheese prices are working higher but still have quite a bit of ground to cover to move back to the highs of early November 2020. Prices would need to increase 45 cents for blocks but only 15 cents for barrels. Barrel price may able to achieve the highs as it is within easy reach. It may be more difficult for blocks to reach that level anytime soon. Current prices are supported with any weakness likely short lived.
BUTTER:
Price is comfortable in the middle of the price range that has so far been established this year. Buying in being done for immediate demand as well as in preparation for demand later in the year. Sellers are offering supply rather than holding for higher prices later. The current market seems balanced. Export demand remains strong and is expected to remain that way for a time.
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