OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 2 to 3 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
Milk futures rebounded nicely on Thursday due to an oversold market earlier in the week. Sometimes steady cash prices are viewed as bullish and sometimes as bearish with yesterday being viewed as bullish. The substantial reduction in dairy cattle slaughter in March was a surprise. Farms are holding onto cows and the animals for farms that sell out are moving to other farms. Heifer supplies are tight and prices continue to increase. Spring flush continues but at a lower level than a year ago. Milk futures will remain volatile.
CHEESE:
It seems cheese prices are in a comfortable range with barrels remaining unchanged for the past three days. Blocks rebounded from the initial loss during spot trading yesterday as buyers wanted to take advantage of the break. Buyers are not interested in building inventory for later in the year but continue to purchase as needed to fill orders or maintain aging programs.
BUTTER:
The price is comfortable near the current level for the time being. However, the market has solid support and may increase as domestic demand improves seasonally. International demand is poised to improve, but likely not by leaps and bounds. Inventory has increased but is only 2% above a year ago even though churning has been active.
