Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | 1 to 2 Lower |
Outside Market Opening Calls:
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 1 to 3 Lower |
Milk:
May through November Class III futures continue to hold nicely above $18.00, garnering support from underlying cheese prices. There is no slowing of milk production as a better outlook will keep cow numbers large. Spring flush may come soon rather than later, if weather continues to remain mild. Some plants report they are running at capacity and turning lower priced milk away. Discounts are increasing for excess milk. Traders are expected to remain cautious prior to spot trading but may have a slightly bullish attitude.
Cheese:
Cheese prices are trying valiantly to break above a long-term trading range that they have generally been confined in since mid-November. Prices have been trending higher. Higher prices could increase seller interest, but good demand may limit any significant retracement. Cheese output continues to increase as milk supply increases.
Butter:
The price weakness of butter over the past two days may be limited if it follows a similar pattern of last week. Butter output in January was 7.0% higher than a year earlier indicating there is sufficient supply being produced to meet demand. Inventory is high making this rally likely tied to increased export demand as well are increasing demand from the food service industry. Price is expected to weaken further Friday.
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