OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 4 Lower |
MILK:
There is some anticipation that underlying cash prices may show further weakness today. Trading volume was light in the overnight market with futures lower. There is some concern over ongoing demand due to the 3.5% increase in the Consumer Price Index that was released on Wednesday. This may impact demand as inflation remains a concern. Milk production continues to increase seasonally as the weather improves. Spot milk is readily available and at a discount. Milk futures are expected to remain choppy. The USDA will release the World Agricultural Supply and Demand Estimates report today which will show their estimates for grains and milk production and dairy prices for the year.
CHEESE:
Cheese prices seem to be settling back after the increase early this week. Traders are cautious over the upside potential of prices at this time of year. Buyers continue to purchase cheese but have not been aggressive and continue to find willing sellers.
BUTTER:
Butter price is expected to hold near the current level as demand is good, but churning is active. This keeps a sufficient supply available for demand as well as building some inventory. Manufacturers are utilizing the current cream supply as the supply will tighten over time and inventory will be needed to meet demand.
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