OPENING CALLS:
| Class III Milk Futures: | 2 to 8 Lower |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 7 to 9 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | Mixed |
MILK:
Milk futures have retraced following the weakness of cash. The recent price strength may have been overdone, but it was fueled by better demand. That might have been due to increased demand for the Super Bowl and the perception that the market has turned the corner. However, prices may remain choppy as traders assess ongoing demand. The demand for replacement heifers is strong as farms want to keep stalls full to produce milk. A tight replacement market may limit cow numbers and could tighten the milk supply down the road. USDA increased its estimates for higher milk prices in the World Agricultural Supply and Demand report Thursday.
CHEESE:
Spot cheese prices may see further pressure Friday as Thursday's weakness may keep buyers on the sidelines. Cheese prices are not anticipated to fall back to the lows but likely will remain choppy and may develop a higher trading range. Recent reports of slower retail demand for cheddar cheese may leave upside potential limited.
BUTTER:
Price is not expected to decline very much, but it will not be without price retracements. Butter demand is good, keeping inventory from building. Some churns are running on full schedules as they utilize available cream and freeze butter for later use. Some plants have opted to sell some cream rather than churn it and build inventory.
