OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | 1 to 2 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 3 to 5 Higher |
MILK:
The pressure on milk futures did not carry over to overnight trading. There is concern further selling pressure could unfold for butter and barrel cheese during spot trading. Milk output is increasing in most areas as the beginning of spring flush is taking place. The mild weather has been good for cow comfort. Milk receipts at the plant level have been increasing, providing sufficient milk for both bottling and manufacturing. There could be some profit-taking ahead of the weekend, which would result in increased futures prices. Spot trading will dictate price direction. USDA will release the World Agricultural Supply and Demand report at 11 a.m. CST. It will provide an estimate of milk production, milk prices, and product prices for the year.
CHEESE:
Barrel cheese price may see further weakness Friday as buyers may hold back due to the weakness Thursday. Sellers were aggressive, wanting to move supply and may remain that way Friday. Buyers will bid lower in the hope that the price will weaken, allowing them to purchase supply at lower prices.
BUTTER:
Buyers of butter may not be very aggressive during spot trading with the idea that sellers may remain aggressive again. Demand should be improving over the next few weeks, which should provide support, but churning has been active, allowing for more butter to be available. Nonfat dry milk may remain under pressure.
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