OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 5 Higher |
MILK:
The World Agricultural Supply and Demand report was positive for dairy prices as USDA raised its price estimates for milk and dairy products. However, that will need to translate into actual prices over time. The current futures prices suggest much better milk prices than the past two years and the hope is this continues or prices increase. Current milk production is sufficient to meet both bottling and manufacturing demand with spot milk still running at a slight discount to class. The price movement of cheese during spot trading on Wednesday may leave traders cautious and uncertain ahead of spot trading.
CHEESE:
The inability of cheese prices to hold the initial strength during spot trading may temper the exuberance that has been prevalent in the market. Buyers want to purchase cheese for later demand but do not want to be too aggressive as cheese supply is available. Sellers are willing to move supply at higher prices. Buyers wait for price weakness to step up to purchase.
BUTTER:
The butter price took a breather but should remain supported. Churning is slowing as the cream supply begins to tighten. Butter inventory is higher than a year ago, providing a cushion of supply. Retail demand is improving which should provide support to the market. International demand is also improving.
