OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 4 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 6 to 8 Lower |
MILK:
More milk is finding its way to the processors as milk increases. More cows than a year ago might result in milk production higher than a year ago. A few months ago, milk production was expected to remain below a year ago as the heifer supply is tight, limiting replacements and expansions. However, expansions are limited, but cow numbers have increased. Milk production per cow might be lower than a year ago, but higher cow numbers will make up the difference. The upside potential for milk prices may be limited for a while unless demand improves.
CHEESE:
Cheese prices are expected to remain choppy. The gains on Thursday were the result of daily business being done and not the change of a trend. Further gains in cheese prices are expected to be short-lived.
BUTTER:
The butter price has had a nice gain this week, but further upside may be limited. There have been 43 loads traded so far this week. Manufacturers want to move supplies to manage plant inventories. Buyers are purchasing to take advantage of the supply and build inventory as a hedge against higher prices later in the year.
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