OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 3 Lower |
MILK:
Class III milk futures broke lower on Wednesday with the Une contract closing at $16.00. Overnight trade has the June contract trading at $15.93 as a low. As time moves forward, futures contracts continue to roll down, eliminating the premiums they have carried. The underlying cash prices have had limited upside potential, with price bounces being met with yet lower prices. USDA will release its estimates for milk production, milk prices, and dairy product prices for this year and 2027 on the World Agricultural Supply and Demand report. The report is not a market-mover but will reflect price potential as estimated by USDA.
CHEESE:
There is little expectation for cheese prices to see sustained strength anytime soon. Buyers see no need to be aggressive as supplies are sufficient for demand. They see no reason to build inventory at this time.
BUTTER:
There is concern that the butter price may experience greater weakness as sellers continue to offer substantial volumes to the spot market. There is little reason for buyers to be aggressive. There are sufficient supplies to meet demand with increased production keeping up with demand.
