OPENING CALLS:
| Class III Milk Futures: | 4 to 9 Lower |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | $0.50 to $1 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
This week has been brutal for Class III milk futures. Selling pressure earlier in the week was the forerunner of weakness in the block cheese price on Wednesday. Futures did not react violently to the downside due to weakness in cheese already factored in. However, the magnitude of the weakness was unexpected, resulting in further pressure. Increasing milk production will keep cheese output strong and may exceed demand in the near term. Farms are expected to push milk production, and cow numbers are expected to increase as the year progresses.
CHEESE:
Cheese buyers are likely to hold back during spot trading to see whether sellers will remain aggressive and move more supplies. There were no uncovered offers at the close on spot trading on Wednesday, which could suggest the decline may have been an aberration, with buyers willing to step back in to take advantage of the decline. This will keep traders cautious.
BUTTER:
The butter price has yet to find support. Offers remained at the close of spot trading on Wednesday, indicating sellers want to move more product. Manufacturers want to move supplies rather than build plant inventories.
