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: | 5 to 7 Lower |
| Soybean Meal Futures: | $3 to $5 Lower |
| Wheat Futures: | Mixed |
MILK:
Milk futures were able to find some strength Thursday as traders increased buying due to higher underlying cash prices. Gains were limited in comparison to underlying cash, which has been the pattern for a while. Traders will be quick to take profits on this bounce with the expectation any price increases will be short lived. Milk production is steady to higher with demand remaining steady and, in some cases, lower. Spot milk prices are lower than usual for this time of year. There have not been any reports of plants informing their patrons that they were no longer picking up milk from them for quite some time. However, one surfaced this week with a patron of a dairy plant receiving a notice to find an alternative place to sell their milk in the next 60 days. The letter indicated the domestic and international market and pricing conditions have placed the processor at a disadvantage to compete in the marketplace. More of these may again surface as we move to spring flush.
CHEESE:
The strength of cheese prices Thursday in both categories was positive. However, the recent strength of barrels may be near the end. Barrel supplies are higher than blocks, which has been surprising that they have moved as much as they have narrowed the block/barrel spread to 9 cents. Upside potential may be limited.
BUTTER:
Price bounced slightly Thursday but is expected to retest the lows of late January at $2.2675 at some point. There is little reason for price to rebound very much as supply continues to grow.
