OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 4 to 5 Higher |
MILK:
The decline of milk futures Thursday rattled a bit of the confidence that seemed to be building over potential higher prices. True to form, underlying cash prices still seem to have limited upside potential as price rallies are short lived. So far, milk production has been doing well, supplying the needs of bottlers and manufacturers without difficulty. The weather will hinder some movement of milk and dairy products, but it is not expected to have an adverse impact on the market. The World Agricultural Supply and Demand and the Quarterly Grain Stocks report will be released Friday, which will show USDA's estimates of milk production, milk prices, and dairy product prices for the year. The report may also have an impact on feed prices.
CHEESE:
The weakness of cheese Thursday could continue Friday as buyers may step back to see how aggressive sellers will be. Manufacturers want to move supply as much as possible rather than store it. They do not want to pay for storage in a market that may not see much upside price potential anytime soon and they would end up losing money. They want to move fresh cheese and not build aging programs to any great extent at the present time.
BUTTER:
Butter might be similar to cheese with early cash gains unable to hold and price falling back. The upper end may be a buying threshold that may keep a lid on the market. Slow exports and strong product availability may keep domestic supply higher than demand.
