Friday Morning Dairy Market Update - Milk Futures Indicate Continued Pressure

OPENING CALLS:

Class III Milk Futures:	5 to 10 Lower
Class IV Milk Futures:	5 to 10 Lower
Butter Futures:	1 to 2 Lower

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Mixed
Soybean Futures:	5 to 8 Lower
Soybean Meal Futures:	$2 to $3 Lower
Wheat Futures:	2 to 3 Lower

MILK:

Milk futures succumbed to the inability of underlying cash to show greater strength. The minor increase in blocks Thursday did little to increase the buying interest of traders. Milk futures increased last week, even though cheese prices declined. Without support of higher cash prices this week, prices are retracing to move back in line with cash. Milk production is improving as spring flush is taking place with greater receipts at milk plants. Spot milk is available in many areas for those who want it at prices below class. Bottlers and manufacturers have sufficient milk available for processing. There is no concern over a tight milk supply.

CHEESE:

Unfilled bids remaining at the close of spot trading Thursday may indicate prices are low enough to increase buyer interest. Sellers have not yet stepped back from the market and have continued to offer loads. If buyers turn more aggressive, sellers may hold back for a bit, allowing prices to increase.

BUTTER:

Price is clearly going nowhere, other than chopping within a range. Supply and demand are balanced and may remain that way for a time. Buyers have been forward contracting into the third quarter having much of their needs covered through that time. Demand is good while at the same time, inventory continues to grow. The marketplace is much more comfortable than it was last year.