OPENING CALLS:
| Class III Milk Futures: | 4 to 12 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 12 to 15 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 2 to 5 Lower |
MILK:
The rebound of Class III futures Thursday showed the market still has some life in it after a tough early part of the week. Milk production is increasing, but certainly not overwhelming the market. Pressure is not from the overabundance of supply. It is a matter of buyers and sellers doing business on the spot market when the price is right. There seems to be a threshold to cheese prices. Consumers are feeling the impact of inflation and higher prices in the grocery store. Current demand for bottled milk is steady. Bottling for school accounts is slowing as suppliers prepare for the summer. USDA will release the World Agricultural Supply and Demand report Thursday morning, which will provide their estimates for milk production, milk prices and product prices for this year. It will also contain their initial estimates for 2023.
CHEESE:
Prices have a way to go to regain the losses of the past two weeks. Prices are anticipated to show further gains Thursday as buyers take advantage of lower prices to increase ownership. Cheese production is increasing as more milk is becoming available to manufacturers. Spot milk remains generally at a discount.
BUTTER:
Price continues to consolidate at the current level, establishing a lower trading range. There is little reason for buyers to be more aggressive as they continue to purchase what comes to the market without having to chase it. Cream supplies have tightened but remain sufficient for demand, keeping butter production active.
