OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 1 to 2 Lower |
MILK:
Class III futures pushed higher on Thursday with the June contract establishing a new contract high. The June contract will begin to be priced early next week but will move relative to the underlying cash over the next month. Cheese buyers have turned aggressive as more have stepped in due to the price increase. The outlook for milk prices has improved, which will keep milk production strong as farms will push milk production as much as possible. Even with high heifer prices, some expansions are taking place. Cow numbers are increasing as culling has slowed. The market is not awash in milk, but there is sufficient supply for demand.
CHEESE:
The anticipation is that spot cheese prices could increase Friday. The unfilled bids remaining after spot trading suggest further interest in buying may be prevalent Friday. Retail cheese demand has improved, but it is uncertain whether it will tighten the market sufficiently to maintain the current prices.
BUTTER:
Sufficient butter is available in storage and being produced to keep the price from breaking out of the sideways trading range. The price spread between butter and cheese continues to narrow to a spread we have not seen for quite a while. This has moved the June Class III futures contract nearly $2.00 above the June Class IV contract.
