OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Mixed |
MILK:
The market was ready for a rebound and cheese price coming off the lows during spot trading was all it took to trigger buying. This may continue if buyers of cheese want to take advantage of lower prices to increase ownership of more cheese for later demand. There is no tightness of milk supply at the present time and there may not be if price remain high. Farmers will want to push milk production. Of course, much will depend on feed availability and feed prices. USDA will release the Prospective Plantings and Quarterly Grain Stocks report Thursday morning, which may have a large impact on feed prices. The February Agricultural Prices report will be released Thursday afternoon which should show an income over feed price above the level that would trigger a Dairy Margin Coverage program payment.
CHEESE:
Cheese price coming off the lows Wednesday during spot trading may bring in more aggressive buying interest Thursday. Buyers may want to take advantage of the lower prices to increase ownership of supply for later demand. Cheese demand remains steady with sufficient supply available to meet demand.
BUTTER:
Price is comfortable and range bound. Demand is being met with inventory increasing month over month. Much of the demand for the Easter season has been met leaving regular demand carrying the market. Cream is readily available.
