OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Higher |
| Soybean Futures: | 5 to 10 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 12 to 14 Higher |
MILK:
Trading was active overnight with Class III milk futures posting double-digit gains for contracts through October. Futures prices have increased substantially over the past month with the June contract gaining nearly $3.00. The June through October contracts are well above $19.00 substantially improving the outlook for milk prices. Now that the avian flu virus has not been found in ground beef and pasteurized milk is safe to consume, there may be no reason for dairy consumption to decline. With the current milk production lower than a year ago and the potential for a seasonal increase in demand, concern may develop over the potential for a tighter supply later in the year.
CHEESE:
Buyers may step up a bit more aggressively now that prices have increased. They may be willing to purchase now rather than later. Seasonally, buyers would become more aggressive in the summer as they look ahead to increased demand in the fall and end of the year. The increase in prices may bring more buyers in as they want to purchase more aggressively before prices move much higher.
BUTTER:
Buyers may be more active in butter now that price is above $3.00 and buyers may not be willing to wait and see if there may be a retracement. The substantial volume of loads traded yesterday may indicate an increase in buying interest and possibly higher prices.
