OPENING CALLS:
| Class III Milk Futures: | 7 to 15 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | Steady to 1 Higher |
| Soybean Meal Futures: | $0.50 to $1.00 Higher |
| Wheat Futures: | Mixed |
MILK:
Traders had anticipated there could be some continued strength of cheese prices in Wednesday's spot market, but that was not the case. Cheese slipped back sending Class III futures lower. The overnight trade is again showing some optimism with most futures contracts posting double-digit gains. Trading volume was good, but not as strong as it was on Tuesday night. A dairy herd in Ohio was discovered to have the HPAI virus. The cattle were purchased from Texas which raises concern over the spread of this virus. So far, it has impacted milk production for a period and carries no concern over the safety of the milk or meat supply. However, consumer perception may have a large impact on demand.
CHEESE:
Block cheese price retested the lows about two weeks ago and bounced up from there. However, the price is having a difficult time continuing to trend higher. Buyers continue to purchase cheese at lower prices without having to be aggressive. Sellers want to move supply rather than pay for storage. They do not want to hold back supplies hoping for a price increase.
BUTTER:
Buying interest in butter has improved as the industry looks ahead to summer demand. Butter that is not moving to fill orders is being frozen and stored for later demand. There is anticipation that export demand may improve as the year progresses. Butter futures are trading above $3.00 in later contracts in anticipation of higher prices.
