OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Higher |
| Class IV Milk Futures: | 2 to 4 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Strong spot prices on Thursday renewed hopes for higher milk prices. Milk futures were higher in response, but traders remained reserved as price increases have not been able to hold and trend higher. The overnight market did not show any short-covering activity as traders are not holding long-term market positions. Milk receipts at the plant level continue to increase, keeping manufacturers busy. Planting progress is being done at a record pace. This should allow for plentiful feed supplies at reasonable prices, allowing for strong milk production. Milk prices have historically moved similarly to corn prices in direction, and lower corn prices may indicate lower milk prices.
CHEESE:
The block cheese price has increased for three consecutive days and may see more aggressive selling interest Friday. Buyers may not be willing to pay much more for cheese due to available supplies. More milk will move to manufacturing over the coming weeks as universities and schools close for the summer. This may leave the upside potential limited in the near term.
BUTTER:
The price has moved back up into the range it has been in for over a month. The dip in price early this week increased buying interest, bouncing the price back up. Limited upside potential is expected, and lower prices may be short-lived. Churning remains active, keeping a sufficient supply available to the market.
