OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 4 to 6 Lower |
MILK:
There had been some optimism over the potential for milk prices to slowly improve but that optimism has waned because of the drop in cheese prices Wednesday. The football playoffs and the Super Bowl increased demand, but that has now slowed at the retail level. This is seasonal, but the recent increase in demand and the current low prices were anticipated to provide greater support. The supply and demand situation is not friendly enough to support the market to trend higher. Weather continues to remain good for promoting strong milk production.
CHEESE:
The weakness of cheese may continue Thursday as buyers may hold back to see how aggressive sellers may be. However, it seems any price decline is a buying opportunity for those who need to fill orders or are rebuilding aging programs.
BUTTER:
Butter price is expected to remain choppy with limited price direction. Churning is active in preparation for Easter season demand. It is also active as the cream supply is heavy and butter is being manufactured and put into storage for later demand. Current demand is holding well.
