OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 2 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | Mixed |
MILK:
There is nothing new in the dairy markets. The increase in cheese prices on Tuesday was a surprise and generated buying interest for a short time. The odds for weakness in cheese prices are high, keeping traders cautious. Milk production continues to increase as the spring flush is taking place. Plants are increasing production schedules as milk receipts are higher. Fluid milk demand is steady. Overall demand for dairy products remains lower than a year ago. The impact of tariffs will be known in time, but it is keeping traders cautious. Underlying cash prices are expected to remain choppy.
CHEESE:
Cheese prices had a nice increase on Tuesday, but further gains may be limited. Buyers see no need to be aggressive as cheese supplies remain sufficient. Increasing milk production will keep the supply readily available. The tariff on China was increased to 104% at midnight and is expected to impact exports to them. They are a large buyer of whey, and the tariff is expected to eliminate their purchases. China announced a retaliatory tariff Wednesday morning, raising it to 84%.
BUTTER:
Butter is expected to remain in a range with little volatility. The cream supply is not as abundant as it has been, but remains readily available. Buyers and sellers are comfortable with the current price.
