OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Lower |
| Class IV Milk Futures: | 3 to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 6 to 8 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 5 to 7 Lower |
MILK:
The April Milk Production report released on Wednesday was bearish for prices unless demand increases as the year progresses. Milk production was up 1.5%, and the highest it has been so far this year compared to last year. Production is improving, cow numbers are increasing and production per cow is rising. It has been anticipated that milk production per cow would not exceed last year's level, but March and April have seen higher output per cow than the previous year. Increasing underlying cash prices and higher futures prices will keep milk production strong and cow numbers growing. It will be up to demand to continue to support prices.
CHEESE:
The unfilled bids remaining at the close of spot trading on Wednesday suggest buyers will remain aggressive Thursday. However, they may step back as they see milk production increasing compared to a year ago. This indicates there should be sufficient milk supply for manufacturing. Cheese prices may be near a threshold.
BUTTER:
Retail butter demand is improving, but whether it will be enough to generate more aggressive buying interest on the spot market over the next few months is unclear. The price should rise seasonally but may not increase as much as in the past two years. The April Cold Storage report will be released on Friday, providing a better idea of potential.
