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: | 1 to 2 Higher |
| Soybean Futures: | 1 to 2 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 9 to 12 Higher |
MILK:
Class III milk futures came off their highs but remain resilient. Milk futures fell Tuesday due to the focus on the weakness of block cheese. Even though there was further weakness Wednesday, traders focused on the barrel cheese price holding its gain. Class IV futures have shown little impact from the price volatility of butter. More milk is moving to manufacturing as schools close for the summer. Some plants have increased operations to handle the milk supply. So far, this has not had a bearish impact on spot milk prices. Cheese inventory has not moved above the levels of a year ago. The anticipation of better demand keeps the market supported
CHEESE:
The wide inversion between blocks and barrels likely will not continue for very long but it is uncertain which one will move closer to the other. It is early in the year for buyers to be as aggressive as they have been, but the perception of a tighter milk supply and higher prices are driving the market.
BUTTER:
The butter price may retest last week's high as buyers turned aggressive Wednesday. Any price weakness will be considered a buying opportunity, leaving limited downside potential. Inventory has increased but not as much as was expected earlier in the year.
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