OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 3 to 6 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | Mixed |
MILK:
Milk futures are unable to find sustained support with some contracts making new lows again Thursday. The hope is that cheese prices will find a higher level to chop around in or the July Class III contract will erode to match where June currently is. Class IV futures remain higher than Class III futures, but contracts are also making new lows. There is plenty of milk available to process, which is keeping supplies readily available. Buyers are complacent and purchasing on an as-needed basis. They see no need to step up and purchase aggressively for later demand.
CHEESE:
Price upside potential is limited under the current fundamentals. Strong milk production keeps cheese output strong. This keeps supply readily available. Higher cheese production also increases the availability of dry whey, which keeps whey prices lower.
BUTTER:
Demand for bulk butter has been a bit lackluster as supplies have increased. Earlier, buyers were purchasing bulk butter and freezing it to put into storage for later demand. That has slowed as buying needs have been filled for the time being. There are a few reports of a slight increase in retail demand, but current production is satisfying demand. Price will remain rangebound.
