OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 4 to 5 Lower |
MILK:
The strength in Class III futures on Wednesday may carry through Thursday, but gains will be limited. The increase in the block cheese price is expected to be limited and short-lived. Market fundamentals do not suggest higher milk prices in the near term. Milk production is sufficient for demand with spot milk prices mostly below class. Bottling for the school systems has been variable as educational institutions have their spring breaks. The February Milk Production report will be released on Friday, providing some clarity on milk price direction.
CHEESE:
Cheese prices are expected to remain choppy. There is no concern from cheese buyers over any tightening of the supply. There is concern that milk production will increase seasonally but demand may not. This would put more supply of cheese on the market reducing the need to purchase ahead for later demand. Buyers are uncertain what that demand might be.
BUTTER:
The butter price is not expected to see much strength anytime soon. Retail demand is improving, but food service demand remains slower than expected. Churning is active with plants running at capacity. Cream loads are clearing to processors a bit easier than they had been indicating cream supply is decreasing slightly.
