OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 8 to 12 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 14 to 17 Lower |
MILK:
Class III futures took a breather Wednesday with contracts through the rest of this year posting a loss. Overnight trade was confined to July with price remaining unchanged. Mixed spot cheese prices Wednesday may leave traders a bit cautious Thursday morning. However, traders feel there is limited downside risk to cash, which will continue to support futures. Class IV futures continue to push higher, making new highs regularly. Strong support stems from butter and nonfat dry milk. Demand is uncertain for dairy products overall as fuel prices continue to increase. Crude oil continues to make new highs, pushing up fuel prices consumers are paying at the pump. This, along with other rising prices, may move the economy into a recession. Dairy demand may not be able to hold as well as it has been if that develops.
CHEESE:
Block price is back above barrels, but price continue to remain at lower levels. Prices have not been able to regain the losses of the previous two weeks. Supply and demand seem to be balanced. Higher butter price has not had a spillover effect on cheese. Neither buyers nor sellers have been aggressive.
BUTTER:
Price reached a psychological level of $3.00. There was a lot of trading activity Wednesday, which may have satisfied much of the buying interest at this high price. The market seems to indicate there is a shortage, but that is not the case. Inventory has been increasing seasonally but has not been able to gain on the level it was a year ago. Export demand is good but may be leveling off. The all-time high for price is 13.50 cents away.
