OPENING CALLS:
| Class III Milk Futures: | Steady to 10 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 8 to 10 Higher |
| Soybean Futures: | 6 to 10 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 4 to 10 Higher |
MILK:
Class III milk futures have fallen over $1.50 from their highs over the past two weeks. Overall fundamentals have not changed. It is likely the result of a market that moved too high, too fast and is now correcting to where it should be. Of course, the weakness of cheese prices over the past week has had significant influence on the market. Milk production is holding steady with some areas, indicating milk output is increasing as weather improves. Spring flush is just around the corner. Bottlers and manufacturers are not concerned over their ability to handle milk this spring with many plants hoping for more milk to meet current needs as well as build supply for later demand.
CHEESE:
The trading action of spot cheese Wednesday would indicate further potential for weakness Thursday. However, buyers may step up to purchase at these lower prices. One reason for the recent lower prices is that buyers may be able to find sufficient supply out in the country rather than having to come to the daily spot market to obtain supply. In general, the anticipation is that price weakness may be limited unless higher prices are having an impact on demand.
BUTTER:
Price continues to remain near the middle of the range established in January. Churning is active with sufficient cream supply available. Ice cream production is slowly increasing, which is utilizing some of the available cream. Inventory is slowly increasing leaving sufficient supply available for demand as well as building supply for later demand.
