OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 10 to 12 Higher |
MILK:
The strong gains in milk futures were tempered some on Thursday due to the strong gains earlier in the week. Futures needed to come back in line with underlying cash. Overnight trade may indicate traders think underlying prices may retrace as the immediate buying frenzy has run its course for now. The current fundamentals do not suggest the market should be this strong. However, the possibility of a lower milk supply as the year progresses may provide underlying support. USDA will release the World Agricultural Supply and Demand report this morning. It will provide their estimates for milk production, milk prices, and dairy product prices for the rest of this year. It will also provide the first look at expectations for 2025.
CHEESE:
The inability of cheese prices to hold the highs during spot trading may indicate a price threshold has been reached. This may not be the high of the year, but may limit the upside potential for now. Any price weakness may be limited as buyers may be willing to buy to increase ownership.
BUTTER:
There have been increased loads of butter traded on the daily spot market as buyers want to purchase and build inventory for later demand. This should continue to support the market.
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