OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 6 to 8 Lower |
MILK:
Milk futures have moved mostly in line with the underlying cash. The bearishness of the milk production report seems to have run its course for milk futures. However, the impact on underlying cash prices is uncertain as the weakness on Wednesday leaves traders cautious. There is sufficient milk available for bottling and manufacturing leaving little concern over milk supply for now. Milk production has leveled which may indicate spring flush has reached its peak. It may remain at this level with more milk moving to manufacturing as schools close for the summer. Class III futures show minor weakness in overnight trade with activity ahead of cash expected to be mixed.
CHEESE:
Cheese could see further weakness during spot trading today as buyers may hold back and continue to purchase on price weakness. The concern over supply tightness has been alleviated, leaving cheese buyers less aggressive. This may change if demand begins to increase seasonally and prices find support.
BUTTER:
The bounce of butter from the low on Wednesday during spot trading may indicate the price has declined sufficiently to generate increased buying interest. The price is not expected to see much more weakness as retail demand is reported to remain strong. Buyers may step up to increase ownership of supply for later in the year.
