OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 2 Higher |
MILK:
There is not much to indicate a significant change in the maket anytime soon. The current fundamentals do not suggest much upside price potential unless there is a change in the current balance of supply and demand. Reduced production of American cheese in April did not support the cheese market, as production was sufficient to meet demand. There is little expectation for milk output to slow anytime soon, leaving it up to demand to determine milk prices.
CHEESE:
The block cheese price was higher on Thursday, but there is little expectation for a change in trend. Sellers will take advantage of a price increase to move more supplies to limit inventory at the plant level. Cheese prices are expected to remain in a range through the summer.
BUTTER:
The butter price declined on Thursday, but should hold most of the gains of the past two weeks. Buyers are purchasing what sellers are offering on the spot market. Demand is good, and buyers are purchasing for immediate needs as well as increasing ownership for later demand.
