Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
Outside Market Opening Calls:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 1 to 3 Higher |
Milk:
Milk production continues to outpace a year earlier and that is expected to continue. There have been upgrades and improvements made to facilities over the past year, increasing cow comfort and milk per cow. With a more positive outlook for prices, the desire will remain to increase milk production. Cow numbers continue to increase with 9,458,000 reported in the month of February. This is the largest amount of cows in the nation since I have records back through 1999. Increased demand from government buying to fill the need of food programs, is providing support by absorbing the extra milk output. Milk futures have been slowly weakening over the past week and are expected to do so again Friday.
Cheese:
Prices are expected to bounce around as time moves forward drawing closer to spring flush in most of the nation. Increased milk production will stretch capacity. There have been expansions done on some milk plants increasing capacity and a few plants have been built. The industry seems to be in a better position this year to handle higher milk production, which would allow demand to be readily satisfied.
Butter:
It seems the strength of butter has run its course for the time being. The restaurant and food service industry pipeline has been replenished to the level it currently needs to be. There is a sufficient supply of butter produced since Dec. 1 in order to satisfy those whose demand is only for fresh butter. Cream supply has tightened somewhat due to stronger demand from other higher fat products to fill the Passover/Easter seasonal demand, but this is not tightening butter supply.
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