OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 2 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 5 to 7 Lower |
MILK:
Class III futures show some gains overnight. Traders seem to believe underlying cash prices may not see much downside in the near term. Barrel price not being able to hold its gain Wednesday was viewed as negative, but that was offset by the strong gain of blocks. With some reports of cheese supplies tightening at the plant level, it could keep buyers actively pursuing fresh cheese supply. The Biden administration indicated an agreement was reached to avoid a railroad strike. This is certainly good news for dairy farms that rely on rail grain shipments. However, there still could be some issues with receiving feed on time due to some slowing of shipments already having been initiated. The details of the agreement have not been released, still leaving some uncertainty.
CHEESE:
Traders are uncertain if the inability of barrel price to retain the early gains Wednesday during spot trading indicates buyers have been satisfied and a price ceiling has been reached or whether it was just business being done by those who showed up to the market. The strength of blocks Wednesday may indicate further upside potential is possible. Tighter cheese supplies at the plant level may keep buyers active in the spot market.
BUTTER:
There is no indication butter price has reached resistance. Sellers were more aggressive, wanting to take advantage of the high price. However, retail buyers may slow some purchases as high prices may be slowing some product movement. Overall inventory is not expected to improve in relation to last year.
