OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Steady to 1 Higher |
MILK:
Milk futures are supported but may not see much upside unless cheese buyers become more aggressive. Milk production is steady to higher over the past weeks depending on the location, leaving sufficient supply for demand. Milk production is running below a year ago, but bottlers and manufacturers have a sufficient supply for needs. The USDA will release the World Agricultural Supply and Demand report Friday morning. The report will contain their estimates for milk production, milk prices and dairy product prices for this year. The Quarterly Grain Stocks report will show how much grain inventory there is.
CHEESE:
Cheese prices may be at a level where buyers and sellers may remain comfortable for a while. It may be too early for buyers to be aggressive and build inventory. Sellers will continue to move products to avoid building inventory at the plant level.
BUTTER:
The butter price could see further upside as buyers may slowly increase ownership. The price is not expected to see much downside leaving buyers unwilling to hold back in anticipation of a price retracement. Any price weakness may be viewed as a buying opportunity.
