Opening Calls:
| Class III Milk Futures: | Steady to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
Outside Market Opening Calls:
| Corn Futures: | 3 to 6 Lower |
| Soybean Futures: | 5 to 10 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | Mixed |
Milk:
Milk futures pushed higher Thursday with some new contract highs being made. However, futures were not able to hold those highs, even though underlying cheese prices were strong. That does not indicate that prices will not continue to trend higher, but that traders are being cautious. Increasing milk production is keeping milk readily available for both bottling and manufacturing. A better outlook for milk prices will ensure continued strong milk production as farmers will keep stalls full. If more plants impose production quotas for a few months, farmers will have a better idea as to what to do this time after having done it last year. More may continue to keep production strong and take the lower prices for a brief period of time rather than culling heavier or drying cows off earlier and the challenges that come with that. Milk futures are expected to show strength into spot trading Friday.
Cheese:
Block price has increased 28.50 cents in less than a month moving price to the highest level since Jan. 19. Increased demand from the food service industry as well as food programs has improved the demand for fresh cheese. Some buying has also come from the need to rebuild aging programs. Many manufacturers are running on full production schedules.
Butter:
The tip back of butter Thursday may only be temporary with a strong possibility price will push higher. Restaurant demand is improving, and retail demand has increased as butter is being purchased for the Passover/Easter season. Price may weaken further Friday as sellers may want to move product.
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