OPENING CALLS:
| Class III Milk Futures: | 4 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 6 to 8 Higher |
MILK:
Class III milk futures slipped into the close Wednesday due to limited aggressive activity in spot cheese trading. Overnight trading activity shows follow-through weakness. The strength of cheese prices earlier in the week may have satisfied immediate demand. A tightening milk supply and more milk moving to bottling may cause buyers to support the market as demand should improve as the year progresses. Class IV milk futures held more optimism on Wednesday as the butter price held and nonfat dry milk increased. The milk supply has tightened but has not moved to a level of shortage anywhere. Spot milk prices are reflecting that supply has tightened but remains available. Milk production is expected to remain below year-earlier levels for the rest of the year.
CHEESE:
Cheese prices may have reached a threshold for now as the higher prices may increase the desire for sellers to move supply. Cheese prices are not expected to retrace much, but may find a trading range for a while. Cheese inventory is expected to decline through the end of the year.
BUTTER:
Butter continues to hold in a range. Buyers have not seen the need to be aggressive as supply is sufficient for demand. Bulk butter was put into storage when the cream supply was plentiful and churning active with supply exceeding demand. Higher inventory leaves more supply available moving through the rest of the year.
