OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Lower |
| Soybean Futures: | 16 to 19 Lower |
| Soybean Meal Futures: | 2 to 3 Lower |
| Wheat Futures: | 9 to 10 Lower |
MILK:
There has not been much change in fundamentals in the dairy market. There had been concern expressed by many over the meltdown in the cattle market over the past week. However, this is unlikely to have a lasting impact on the market, as cattle numbers are currently low and are not expected to change anytime soon. Calf prices are expected to remain strong and continue to be a significant revenue source for farms. Secretary of Agriculture Brooke Rollins said on Wednesday that cattle imports from Mexico will not resume anytime soon. This provided substantial support to cattle futures. Dairy cow numbers remain high, with some farm expansions continuing to take place. Milk production will remain strong.
CHEESE:
Barrel cheese supply remains tight, with price supported by limited trading activity. Blocks have been seeing more activity, but that has not put pressure on the price. There is good demand for fresh cheese. Increasing cheese production due to higher milk output will keep sufficient milk available for needs.
BUTTER:
It will be interesting to see whether buyers will step back in to purchase butter after the recent decline or if the market will make a new low for the year. The low last week was $1.5450, with the price on Wednesday just one penny above that level.
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