OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 2 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 4 to 5 Higher |
MILK:
Traders continue to support Class III futures in the expectation that underlying spot cheese prices will maintain the current level or move higher. Strong demand is keeping pace with increased milk production. This is limiting the increase in inventory. Milk output remaining significantly above a year ago is not viewed as bearish, as it was late last year. The better prices the futures are currently showing throughout the rest of the year will keep milk production strong, and dairy farms will continue to hold onto and add cows.
CHEESE:
The block cheese price showed weakness over the past two days and it is uncertain whether that weakness will continue Friday. Buyers may hold back if the sellers remain actively wanting to move product to limit inventory building at the plant level.
BUTTER:
The market seems to be balanced as buyer interest in the spot market is being met with sellers wanting to move supplies. Sellers are not holding back to see how aggressive buyers will be. Strong butter output needs to be moved and the fact that inventory remains below a year ago is testimony to strong demand.
