OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 6 to 8 Lower |
MILK:
Milk futures are not likely to see much price direction ahead of spot trading. There continues to be a lack of strength in underlying cash as supply remains sufficient for demand. Milk production is improving as spring flush continues. The confirmation of avian flu in Idaho does not seem to have any impact on the market. It may not have much impact if it does not harm overall milk production in the country. We can only hope that it will not have a negative impact on consumer demand. Traders may be cautious about buying into milk futures even if cheese prices increase as the pattern continues with price increases being short-lived. The income over feed for February was $9.44.
CHEESE:
Cheese prices may retest the lows of late December as buyers are not concerned about supply at present. That could change quickly if demand begins to improve and milk production remains below the level of a year ago.
BUTTER:
Butter price is poised to break above the top of the recent trading range and trend higher. Inventory has been increasing but the increase is not a concern for the industry but rather provides a cushion of supply for later demand. Any evidence of improved international demand, which is anticipated as the year progresses, would provide further support to price.
