OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | 2 to 6 higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 4 to 6 Lower |
MILK:
At least there was some stability in milk futures as underlying cash increased. The increase of cheese prices should have garnered higher Class III futures than it did. Futures fell further earlier this week than underlying cash would suggest and the rebound Wednesday was not as much as it should have been. However, traders seem reluctant to put premium into the market as it remains choppy. Milk production is lower with cow numbers decreasing, but supply is sufficient and international demand lackluster. Cooler weather has improved cow comfort and will improve production, but output is expected to remain below what it was a year ago through the rest of the year.
CHEESE:
With the increase of spot cheese prices Wednesday, buyers may be aggressive Thursday as they may want to purchase cheese before prices move much higher. There may be a limit to how high prices will move due to the current balance of supply and demand.
BUTTER:
Price moving above the previous high and back to the level it was in December 2022 bodes well for the market. This could result in greater buying interest as both time of year and the potential for increased demand would be supportive. Butter futures currently hold a discount to cash.
