OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 1 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Milk futures suffered a blow Thursday as underlying cash was substantially weaker. Even with that, Class III futures did not fall in relationship with the decline of cheese prices. Traders have become accustomed to the swings of cash and are unwilling to follow the price swings fully. Milk supply is plentiful to meet the needs of steady fluid demand and is keeping manufacturing plants full. Farms are pushing milk production with milk per cow continuing above year earlier levels. Feed supply is sufficient and cow comfort has been conducive for production. March through September Class IV milk futures closed at or lower than Class III futures Thursday. It has been a long time since we have seen lower Class IV futures in comparison to Class III.
CHEESE:
It seems cheese fell into a void Thursday with sellers wanting to move product with little interest from buyers. Increased cheese production leaves more available for buyers keeping them less aggressive. The weakness Thursday may keep buyers sidelined or only willing to purchase at lower prices or they could step up to take advantage of the lower prices. It may be difficult for blocks to move back up to $2.00 again, but certainly not out of the question if buyers become more aggressive.
BUTTER:
Price is not expected to fall apart, but is adjusting lower due to more product being available to the market. Increased butter production is satisfying current demand as well as building supply in preparation for Easter and Spring demand.
