OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 6 to 12 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 20 to 30 Higher |
MILK:
Overnight trading activity in milk futures indicates some follow-though trading will take place Thursday prior to spot trading. Milk futures were ready for a bounce and that is what transpired Wednesday after strength was seen in barrels. The weakness of dry whey offset some of the gains in the price calculation, but the increase of cheese triggered the aggressive buying by traders. Milk production is increasing seasonally as spring flush unfolds. This will keep supply readily available for demand. Spot milk remains generally at a discount to class primarily in the Central region with some of this due to the lack of employees at various plants making them unable to process the increasing milk supply. This extra is being offered to market at a discount to those who want it and can process it.
CHEESE:
The strength of barrel cheese Wednesday renews the hope that buyers will step back up and purchase more aggressively to increase ownership. The hope is that blocks will follow suit Thursday. American cheese production during the month of March was down 1.4% according to the Dairy Products report released Wednesday.
BUTTER:
The increase of butter price Wednesday was likely a matter of taking care of orders that had been placed. Buyers have been purchasing for demand later this year and seem willing to purchase for later demand when price is declining. Price increases seem tied to immediate orders that need to be filled. Sideways trade is expected for the foreseeable future.
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