OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 2 Higher |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | $0.50 to $1.00 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Milk futures fell back over the past two days as spot cheese prices may have reached a threshold, and butter fell back following strong gains. There is no shortage of milk in the country. More milk is moving to manufacturing, increasing the production of dairy products. This should leave a sufficient supply for demand unless demand improves more than expected. Spot milk prices remain at a discount to class, indicating the milk supply is holding after the spring flush season is past. Futures prices may trade mixed ahead of spot trading as traders are uncertain about the cash prices. The USDA will release the April Agricultural Prices report, showing the average prices used in calculating the income over feed price.
CHEESE:
Spot cheese prices may have reached a threshold at which buyers and sellers will be comfortable doing business. Cheese production remains strong as more milk moves to the vat. Retail cheese demand is improving and hopefully will keep up with the increased production.
BUTTER:
The sharp butter price decline on Thursday may keep buyers on the sidelines today. They may wait to see if the sellers will be aggressive again today. However, further weakness could increase the buying interest and support the market. Demand for butter is reportedly improving.
