OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 1 to 4 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 2 to 4 Higher |
MILK:
The weakness of cheese Thursday put significant pressure on futures through the first half of the year while later contracts held and gained. Traders have become accustomed to price swings in underlying cash and hold back on putting premium in milk futures when underlying prices increase and holdback on selling when underlying prices decrease. Futures will follow cash movement but to a lesser extent. The heavy rains in California have been reported to have had limited impact on milk production and processing so far. There have been delays in some cases and some processing facilities have had to close briefly at times. Overall milk production in the country is steady to higher. Markets will be closed on Monday due to the Martin Luther King holiday.
CHEESE:
The weakness of cheese price Thursday with offers remaining at the close of spot trading suggests further weakness might be seen Friday. Increased cheese production and sufficient supply will keep buyers from getting very aggressive. Many are purchasing on an as-needed basis in the anticipation of lower prices to come. If lower prices develop, there could be an increase in forward contracting for later in the year as buyers would take advantage of it.
BUTTER:
Price remains at a level where buyers and sellers are comfortable. There is no expectation of large price swings as business is being done in the country. Increased churning due to abundant cream supply is meeting demand and beginning to rebuild inventory.
