OPENING CALLS:
| Class III Milk Futures: | Steady to 10 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 5 to 10 Higher |
| Soybean Meal Futures: | $4 to $5 Higher |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Milk futures came under pressure Wednesday due to the weakness of underlying cash. If this is a result of buyers reaching a price threshold, then further weakness is possible as buyers will hold back and purchase on price weakness. Prices could follow a similar pattern as they did in January when they came under pressure. Milk futures are expected to show further weakness today. Milk production remains steady to slightly higher in some areas of the country leaving sufficient milk for bottling and manufacturing. Some areas are tighter on supply and need to meet demand with milk from outside of the region. Some plants are encouraging patrons to increase production if possible. Farms are balancing higher input costs with maintaining current cow numbers and possibly increasing herd size.
CHEESE:
It was not a matter that cheese demand has fallen off or that supply has grown, weakness Wednesday was a reaction to buyers having reached a plateau with immediate demand being satisfied similar to what happened in January. Prices may not follow the pattern exactly, but weakness may cause buyers to step back a bit.
BUTTER:
Manufacturers are looking ahead to Easter demand and are churning as much as possible to both build some inventory as well as meet current demand. Cream supply is more available. Retail demand remains strong with food service demand slowing a little. Weaker cash is expected today.
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