OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | 8 to 10 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | Mixed |
MILK:
The only trading activity taking place overnight in milk futures was in the April Class IV contract. There were 15 contracts traded, adding to the unusualness of this event. I have never seen overnight trading activity in Class IV, but not in Class III futures. Class IV futures have been outperforming Class III futures, but not because of a strong butter price, but because of the strength of nonfat dry milk. The nonfat dry milk price has moved to the highest level since June 28, 2022. Butter and cheese prices may have difficulty trending higher as milk production increases seasonally.
CHEESE:
The block cheese price maintains an overall uptrend, but may develop a sideways pattern as more milk moves to manufacturing due to increased milk production. Demand for cheese has improved, but inventory is expected to increase over the next few months.
BUTTER:
The butter price may be low enough to generate buying interest, but the buyers may not be aggressive. Sellers have been interested in moving supplies. This may keep buyers less aggressive and only willing to buy as it is offered to them. There is no concern over tightening supplies despite an increase in retail demand.
