OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 2 to 3 lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | 1 to 3 Higher |
| Soybean Meal Futures: | $1 to $3 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Milk futures took a hit Wednesday in reaction to lower spot prices in all categories. Buyers of cash may hold back again today waiting to see how aggressive sellers might be. Current milk supply is sufficient, keeping plants operating on full schedules. Spring flush is not too far away with Dairy Market News indicating Mid-Atlantic states are seeing some beginning to spring flush. The level of increased milk production through spring will have an impact on prices. Production has been above year-earlier levels for quite some time. Further production increases with current demand may leave milk prices floundering for some time. Weather has been good for cow comfort other than brief bouts of adverse weather than has mainly impacted the movement of milk and dairy products rather than cow comfort. Income over feed for January was $7.94 resulting in a large payment for those who chose the $9.50 coverage level under the Dairy Margin Coverage program.
CHEESE:
Prices could see further weakness as buyers may hold back another day waiting to see how aggressive sellers might be. Buyers remain unconcerned over supply as milk production is strong and manufacturing running on full schedules.
BUTTER:
The significant decline of price Wednesday may follow-through Thursday as buyers may wait for lower prices before stepping back in more aggressively. Increasing supply will keep price increases limited. Churning activity has not slowed, keeping sufficient supply for immediate demand and for building inventory for later demand.
