OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | Steady to 3 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Milk futures are supported but will remain choppy. Underlying cash is holding with any price weakness providing a buying opportunity. There is sufficient milk available for both bottling and manufacturing with more moving to manufacturing as schools are closed. This is not overwhelming the market as spot milk prices range from $1.00 to $2.00 below class. Demand for cheese and butter is improving seasonally but not by leaps and bounds. Buyers continue to take advantage of price declines to increase ownership. Bird flu has been confirmed in Minnesota and Iowa, adding to the list of states with cases. This has not yet had a noticeable impact on overall production but may become a larger issue if it continues and more states are added to the list. Fortunately, this has not impacted consumer demand for dairy products.
CHEESE:
Cheese exports were strong in March and April and there is little reason to believe this will change for much of the year. World demand has been improving and U.S. prices remain competitive. Domestic demand is slowly increasing seasonally with production keeping pace with demand. Spot prices may remain choppy as buyers and sellers take care of business.
BUTTER:
Butter is a wild card. Price declines are met with buying interest. Each time the price declines, buyers step in and push the price higher than the previous time. Strong domestic demand and exports exceeding last year's level, may set the stage for another price record later this year.
