OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 3 to 4 Higher |
MILK:
Class III milk futures did not respond positively to the steady to higher cheese prices on Wednesday. Traders maintained their caution overnight, waiting to see further confirmation of support before renewing their buying interest. The milk supply is sufficient for demand, with more moving to manufacturing. This is not expected to increase inventory as the seasonal increase in demand should keep supplies from building. Milk production is expected to remain above a year ago, keeping processing facilities supplied.
CHEESE:
Cheese production is increasing with more milk being available. However, production is not expected to overwhelm the market and result in inventories remaining below a year ago. The April Dairy Products report will be released this afternoon and is expected to show stronger cheese production than a year ago, as has been the pattern so far this year.
BUTTER:
The butter price showed its resiliency with the strong gain on Wednesday. The buyers on the spot market have been serious in their desire to increase ownership for expected later demand. Further price increases are likely. Churning remains active due to sufficient cream supply, even though there is more demand from Class II products for the summer.
