OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 3 to 4 Lower |
MILK:
The April Dairy Products report released on Thursday was bullish, indicating that butter and cheese output were higher than a year ago, but this was not reflected in the Cold Storage report. Inventory increased in April but not at the usual rate, with cheese supplies remaining below a year ago and butter falling below a year ago. Strong milk production has not had the impact that had been anticipated earlier in the year. The potential impact of tariffs on exports has not materialized as exports have remained strong. Improving demand should support milk prices, but readily available supplies may limit the upside price potential.
CHEESE:
Cheese prices may chop around for a time, as buyers and sellers may be comfortable at the current price levels. Cheese production is steady, even though more milk is available for manufacturing.
BUTTER:
The butter price slipped on Thursday, but buyers were willing to purchase what was offered on the spot market. There have been 79 loads of butter traded this week, with more likely to change hands Friday. There may be substantial upside price potential due to strong exports and improving domestic demand.
