OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 8 to 10 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 3 to 5 Higher |
MILK:
Milk futures found stability on Thursday, but aggressive buying did not materialize. Traders need to see further evidence of buying interest in the cash markets. Trading activity may be mixed ahead of spot trading today. With sufficient supply for demand and the potential for stronger-than-expected milk production, buyers may not be as aggressive with their purchases. Demand is expected to increase seasonally, which should keep buyers of the physical commodity active, but not aggressive, in the near term. USDA will release the April Agricultural Prices report this afternoon, providing prices used to calculate the income over feed price for the Dairy Margin Coverage program. The soybean meal price is not on the report and will be released later by the FSA.
CHEESE:
Block cheese price remained steady on Thursday but does not indicate it has found support. The block/barrel spread remains inverted, indicating barrel cheese is in better demand and has tighter supply than blocks. Cheese plants indicate demand is improving, which may at least provide price support.
BUTTER:
The butter price was pushed higher by one buyer needing to purchase a load. Once that load was purchased, no other buyers were in the market. It will be interesting to see if sellers will take advantage of the higher price or if other buyers will step up today to purchase ahead of further price increases.
