OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 5 Lower |
| Soybean Futures: | 10 to 14 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 12 to 16 Lower |
MILK:
Class III futures Friday eliminated the gains seen Thursday. This type of volatility is becoming normal as traders quickly change positions due to market movement or trader perception. The pattern of underlying cash is one of stair-stepping higher. Strength moves underlying cash and futures higher before a price retracement takes place. The movement is again repeated but moves to a higher level. The strength happening at this time of the year either indicates further strength to come or buying for later in the year might be accomplished earlier than usual.
CHEESE:
Lower cheese prices will find buying interest resulting in prices moving higher. The decline of Friday may not be enough to trigger buyer interest. However, the price is not expected to decline very much. Buyers are looking ahead to upcoming demand and the potential for milk supply to tighten at some point.
BUTTER:
The butter price may continue to ratchet higher as retail demand improves and churns reduce production due to tightening cream supplies. Buyers are looking ahead to demand later in the year and are contracting supply. International demand is improving providing support to the market.
