OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 7 to 9 Higher |
MILK:
The strength of Class III milk futures carried through overnight in the nearby months with June and July moving higher into the $20.00 range. The strength of underlying cheese prices may be emotionally driven as buyers are concerned over higher prices already at this time of year and when supply is sufficient for demand. The concern is over the impact of increasing demand with lower milk production expected throughout the year. There may be further short-covering Thursday as the strength of milk futures was unexpected.
CHEESE:
Sellers of cheese may hold back to see if buyers will remain aggressive. There were two unfilled bids for blocks remaining at the close of spot trading Wednesday which would suggest further buying interest Thursday. The large increase in blocks Wednesday could also pull more buyers into the market. Some panic may come into the market from those buyers who have been holding back.
BUTTER:
The butter price held steady and is supported. The strong interest in cheese may spill over into butter as well. Domestic demand is steady and expected to improve. Churning is active with a sufficient cream supply. However, the cream supply will decline as ice cream production increases and schools close.
