OPENING CALLS:
| Class III Milk Futures: | 4 to 6 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 12 to 16 Lower |
| Soybean Meal Futures: | $4 to $6 Lower |
| Wheat Futures: | 7 to 9 Lower |
MILK:
There is little to push milk futures higher at the present time or possibly in the near future. With current milk production increasing seasonally and supply sufficient for bottling and manufacturing demand, there is little concern over supply. Feed supplies are plentiful and of excellent quality in most cases. Cow numbers are being maintained overall with some expansions taking place.
The Kraft Heinz Co. is bringing dairy-free macaroni and cheese to the U.S. for the first time. It has been sold in Australia for the past two years with the company now expanding sales. The company said the new recipe has the same creamy texture and flavor as its original Mac & Cheese but replaces dairy with ingredients like fava bean protein and coconut oil powder. Kraft indicates that so far 30% of buyers purchase the product a second time citing a disappointing taste and texture.
CHEESE:
Nothing replaces real cheese, but the current supply is sufficient for demand, leaving buyers complacent. The recent pattern of cash cheese prices has been a daily divergence of block and barrel prices. This leaves traders guessing as to price potential with an overall bearish tone prevalent. This choppiness is expected to continue as buyers purchase as needed.
BUTTER:
Price has had three days of gains as buyers have been more aggressive. The unfilled bid remaining at the close of spot trading on Thursday could indicate further strength today. However, once the immediate demand is filled, sellers might become more aggressive.
