OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 8 to 14 Higher |
| Soybean Meal Futures: | $1 to $3 Higher |
| Wheat Futures: | 4 to 6 Higher |
MILK:
Class III milk futures have taken a beating over the past two days with trade likely to be mixed ahead of spot trading. It is uncertain just how aggressive sellers in the spot cheese market will be. Traders have been quick to sell milk futures heavily with limited underlying price weakness. Milk futures may move into a range temporarily as the market adjusts to reduced milk output, tightening milk supply from what it had been. There is sufficient milk available for bottling and manufacturing, but the perception of tighter milk supply should provide support.
CHEESE:
Cheese demand remains steady overall. Some plants indicate cheese is already spoken for as it is produced, leaving nothing for plant inventory. Buyers of cheese have been aggressive on the spot market until the past two days as prices may have risen too far, too fast under the present market fundamentals. However, seasonal buying is increasing, which should provide some support to the market. Low bids were placed during spot trading Wednesday and remained during the trading period. These may be placed again Thursday, indicating a level at which price may find strong buyer support.
BUTTER:
The strength of butter may continue as buying interest increases as buyers are looking ahead to demand later in the year. Tightening cream supplies are reducing output, resulting in inventory decreasing as production does not keep up with demand.
