OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 12 to 15 Higher |
MILK:
This week traders have indicated their desire for milk futures to increase as overnight trade has shown strength. Overnight trading activity has been unusually high this week with traders trying to create volatility to take a small profit. Underlying cash has not cooperated with the strength seen in overnight trading, bringing futures back in line with the cash prices. There is little fundamental reason for cheese, dry whey, and nonfat dry milk prices to increase much in the near term. Milk production is improving during the spring flush period leaving sufficient supply available for demand. Spot milk prices continue to run below class with some prices this week as much as $5.00 below class. USDA will release the February Dairy Products report this afternoon.
CHEESE:
The unchanged prices for cheese during spot trading on Thursday will leave traders uncertain of price direction today. Prices have been choppy and are expected to remain that way with price gains limited.
BUTTER:
Butter price is trending higher but that will not be without price setbacks at times. The slight decline in price on Thursday could have buyers pull back a bit in the hopes that sellers will become more aggressive and willing to move supply. However, the downside may be limited as demand remains good.
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