OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | Steady to 2 Higher |
MILK:
It is anyone's guess as to what milk futures will do Thursday. Underlying cash cheese prices could bounce as has been the pattern, but the bounce may not be enough to erase the large decline of barrel cheese Wednesday. However, the overall direction of the market is lower. There just has not been sufficient support coming from underlying cash prices to move the market higher and generate strong buying interest. Class IV prices have been holding well due to the continued strength of butter. Hot weather is impacting milk production, but it is difficult to say whether this will have a sufficient impact on supply to dictate higher prices. Dairy Farmers of America (DFA) is in the news again with another lawsuit in the Northeast over an alleged attempt to control the Northeast milk market.
CHEESE:
Cheese prices may rebound somewhat Thursday as the decline of prices yesterday might generate buying interest. That has been the pattern recently, but any buying interest may be limited. The decline of barrels Wednesday may keep buyers purchasing on an as-needed basis rather than purchasing ahead.
BUTTER:
Price is increasing in the attempt to find a level at which demand will slow. So far, buyers remain aggressive and unconcerned over downside price risk. Higher price has yet to result in a significant increase of churning with some plants selling cream rather than churning it into butter. Even at the higher price, production is limited due to labor and trucking issues and not a matter of a tight milk and cream market.
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