OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 2 to 4 Higher |
MILK:
The expectations for underlying cash movement Friday are not very great. Market fundamentals are not much to get excited about. Milk production may improve somewhat with the severe weather behind in most cases. Manufacturing plants continue to receive sufficient milk for production. Farms that exit the dairy business have willing buyers for their cattle, in most cases keeping milk production steady. Feed prices have been weakening and do not look as if they will move higher any time soon, which generally will keep milk production strong. Milk futures are expected to drift ahead of spot trading.
CHEESE:
Further pressure may be seen on cheese Friday as buyers hold back, waiting for lower prices and a chance to purchase on the way down. Demand is steady, which has kept inventory from building, but it leaves sufficient supply for demand.
BUTTER:
Butter production is active with a plentiful cream supply available. Price has not fallen as low as it was a year ago but may remain in the current range for an extended period like last year. Inventory has been building but not to a bearish level and the industry is not concerned over present levels. Most churns are running at capacity.
