OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 5 to 7 Lower |
MILK:
The delay of tariffs on Mexico and Canada on goods under the USMCA agreement for a month had no impact on the market on Thursday. The mixed underlying spot prices provided little incentive for traders to move milk futures higher. Overnight trade showed limited activity confined to the April Class III contract. However, bids are higher than the close, indicating higher prices as trading activity increases. Underlying cash prices are not expected to provide much support as it is unclear whether prices have found support. Milk production is improving seasonally, but overall demand is lacking.
CHEESE:
As long as cheese will be offered on the spot market, buyers will hold back and purchase at lower prices. Buyers are not buying to build inventory, but for immediate needs and to rebuild aging programs. The slower demand leaves sufficient cheese available to the market. Spot prices are expected to remain choppy.
BUTTER:
The butter price has bounced over the past two days, with the strength expected to be limited and the return to another new low. Heavy cream supplies continue with manufacturers running full schedules to process the cream. This leaves butter readily available and the upside price potential limited.
