OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 12 to 20 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 8 to 12 Higher |
MILK:
The rebound of milk futures Thursday did not carry through overnight. The strength of block cheese without barrels does keeps traders cautious. It is unclear whether price has uncovered a level at which buyers will step up and be more aggressive or whether Thursday was just a matter of the need to fill orders. The milk market seems to be somewhat balanced with sufficient supply for bottling and manufacturing. Milk production continues to improve seasonally. Increasing cow numbers and production per cow may eventually move milk production near unchanged from last year. USDA will release the March Agricultural Prices report Friday, providing most of the price used in the calculation of income over feed for the Dairy Margin Coverage program. There was a change in the reporting of the average soybean meal price for the month last time, which resulted in the inability to report the income over feed price until the following day. I have not been able to find any place to find the average soybean meal price any earlier than posted by the Farm Service Agency.
CHEESE:
There is a strong possibility of cheese prices moving higher Friday during spot trading. Sellers may hold back a bit to see how aggressive buyers might be. However, current supply and demand seems balanced, which may leave buyers and sellers doing business near current price levels for the time being.
BUTTER:
Price may have limited upside potential, as inventory is growing while current demand is being satisfied. Retail sales have slowed a bit while food service industry demand remains strong. Export interest is good due to price being attractive to international buyers. Further strength is anticipated in the cash market Friday as buyers take advantage of the lower price.
