OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | Mixed |
MILK:
USDA lowered milk production this year by 1.0 billion pounds in the World Agricultural Supply and Demand report Thursday, but they also reduced the Class III and All-Milk prices as well. These are just estimates, but estimated lower milk production of that magnitude failing to support prices does not provide a positive outlook. Spring flush leaves sufficient supply for demand. Buyers of dairy products are not concerned about supply at present and have not been purchasing aggressively to build inventory for later demand. It seems they are willing to wait to see whether demand will show signs of improvement before they may be more aggressive. Two more states have discovered avian flu in dairy cattle -- North Carolina and South Dakota. The market is uncertain as to the further impact of this flu.
CHEESE:
The weakness of cheese prices Thursday caught traders off guard, resulting in aggressive selling. Cheese buyers may hold back Friday, waiting to see how aggressive sellers will be. Buyers are uncertain about demand and are not interested in purchasing supply too early only to find out demand may not be as strong as anticipated.
BUTTER:
Price fell back to the lowest level in six days. Price is not expected to fall back very much as buyers will take advantage of the decline in price. Inventory is building as churning is active and cream supply plentiful. Current needs are being met with additional production being frozen and put into storage.
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