OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 3 to 5 Higher |
MILK:
Milk was in a holding pattern Thursday with traders searching for further price direction. There was some movement of underlying cash, but not sufficient to develop further excitement. Trading volume was very low in contrast to Wednesday with April still showing the greatest activity with no price movement for the day. Overnight trade is mixed with trading confined to April, May, September, and November contracts. Not much is expected Friday, unless there is a significant price move in underlying cash. Milk production this week is described as steady for much of the country with some areas showing early signs of spring flush. The February Milk Production report will be released Monday and will be watched to see what cow numbers will be in comparison to January.
CHEESE:
The slight decline in block cheese price Thursday might indicate buyers have reached a threshold and may hold back to wait for lower price before renewing buying interest. Block price is back up to the level it was two weeks ago.
BUTTER:
Price moved back to the middle of the price range it has been in since late December. Supply and demand are balanced with inventory increasing. The increasing inventory is not bearish to the market as it is seasonal and welcomed by the industry. Reduced supply last year and the resulting fear of a shortage is not something the industry wants to repeat. Price is expected to remain in a range.
