OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | 8 to 12 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 5 to 8 Higher |
MILK:
Class III milk futures remain strong despite the weakness of dry whey the past two days and weakness of barrels earlier this week. Milk futures were unaffected by the pressure that moved through most other commodities and financial markets Thursday. Traders seem to anticipate that the weakness of barrel cheese and dry whey this week will be short lived and prices will regain those losses. This has kept Class III futures strong as traders did not want to be whipsawed following every move of underlying cash. If there would be any further weakness of underlying cash, there could be a quick price correction as futures anticipate a rebound of prices. Class IV futures have been trading more in line with cash keeping a $2.00 to $3.00 premium to Class III.
CHEESE:
Block price has held steady all week with limited trading activity. This seems to indicate the market is balanced for the time being. There have been some reports that demand has slowed a little but overall demand continues to remain strong. The cash market that will be watched closely will be dry whey as the high price may have begun to impact demand.
BUTTER:
Price is expected to remain in a sideways range for now. There is no significant demand period for butter until closer to Easter with steady demand expected for a while. However, with steady demand, supply may be able to increase as churning activity is picking up. Strong international demand may limit the volume of butter that might move to inventory.
