OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 6 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 8 to 12 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 2 to 4 Lower |
MILK:
The April, May, and June Class III milk contracts established new lows Thursday in reaction to the weakness of cheese. Even though those same contracts are higher overnight, there may be further pressure Friday due to the selling interest remaining in the spot market at the close of trading. Traders are using the volatility of futures to take a quick profit if one is realized. Futures may be choppy ahead of spot trading as the anticipation of strength due to lower milk production in February does not currently seem to be a factor. A winter storm is moving across numerous states but that is not expected to have any real impact on the market as delays will be minimal and milk will be processed.
CHEESE:
The large number of uncovered offers remaining at the close of spot trading on Thursday suggests selling may be more aggressive Friday. With that interest in selling, buyers may hold back to see how aggressive sellers will be as they have cheese to move to the market. There may be further weakness in cash.
BUTTER:
Butter will continue its choppy pattern as the current market seems to be balanced. Most of the demand for Easter has been met with regular demand to carry on. Manufacturers are looking ahead to spring demand and are trying to build inventory for later in the year. Churning remains active with readily available cream supplies.
