OPENING CALLS:
| Class III Milk Futures: | 10 to 15 Higher |
| Class IV Milk Futures: | 10 to 15 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 7 to 10 Higher |
| Soybean Futures: | 7 to 10 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 10 to 12 Higher |
MILK:
Milk futures had a strong day Thursday that carried through overnight. There may be further optimism over cash Friday and buyers seem to be more aggressive recently and may be purchasing on a seasonal basis. The July contract is basically priced and will not move very much the rest of the month as traders have much of it factored in. Unfortunately, the Class III price for July will be below $14.00. Milk output is decreasing in some areas of the country while remaining strong in other areas. Spot milk prices in the Upper Midwest remain depressed with some milk still as much as $11.00 below class. Some milk is still being dumped. This should come to an end soon as weather impacts milk output.
CHEESE:
Some plants report an increase in demand from retail outlets depending on variety. There are a few reports that pizza demand is a little slower than usual, impacting sales for cheeses used on pizzas. Overall demand is steady with inventory continuing to remain similar to levels last year. Cheese production remains strong as a plentiful milk supply is being absorbed into cheese production.
BUTTER:
As price trends higher, it brings more buyers in from the sidelines as more want to purchase product before the price moves higher. Butter production is beginning to slow in some areas with some plants scheduling downtime for maintenance. However, churning will remain active as cream remains available. Inventory remains higher than a year ago.
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