OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 10 to 13 Lower |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 25 to 30 Lower |
MILK:
Class III milk futures were able to bounce Wednesday despite the weakness of cheese during spot trading. This leaves the market in a sideways pattern. Front-month May will adjust to better-than-expected prices on the weekly AMS product price report. No trading in the contract took place overnight but the current bid is 7 cents higher than the close Wednesday. Class IV futures have regained the losses suffered in the second half of April and have made new contract highs, supported by the strength of butter and nonfat dry milk. Trading activity is expected to be light as there is uncertainty surrounding the current weakness of cheese and whether butter may have run its course.
CHEESE:
The action of cheese during spot trading Wednesday does not give the indication of a market that has found support. Buyers may hold back again Thursday as they have concern over demand over the next few months. Demand has been steady but there have been some reports of a slight slowing. This may be variety specific but a slowing, nevertheless.
BUTTER:
Butter has had an impressive price increase over the past two weeks. Buyers seem to have been pulled in from the sidelines as price has steadily increased. This tends to make them more aggressive as they want to purchase what they can before price rises further. Once buyers are satisfied, price tends to settle back. Price may be near that level.
