OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | 8 to 11 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Class III milk futures were lower in overnight trade with activity confined to the May and June contracts. Some pressure may be seen on the market due to numerous recent news stories about the avian flu virus with many of them not entirely accurate. So far, this has not harmed dairy prices. The recent strength of underlying cash and milk futures has improved the price outlook. Milk production continues to improve as spring flush continues. This leaves sufficient milk for both bottling and manufacturing. There are some reports of improving cheese demand.
CHEESE:
Higher cheese prices are holding as the market remains supported. Sellers have not been aggressive with buyers not holding back and buying on only minor weaknesses. Spot milk continues to run below class but has held steady in recent weeks.
BUTTER:
Butter moving above $3.00 may increase the desire for buyers to step up more aggressively. The price strength already at this time may indicate a stronger market than anticipated this year. Domestic demand is good and there is potential for international demand to improve.
