OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 10 to 20 Higher |
| Butter Futures: | 2 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 4 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 3 Lower |
MILK:
Milk futures have declined from the highs, but should find support above the previous lows that were established before the strong price increase. The hope is demand will slowly raise the floor with each price increase, establishing a higher level. However, the upside price potential may be limited due to continued strong milk production. If the outlook for milk prices improves, milk output will not slow. The discussion of whether there are sufficient replacement heifers available to the market continues. What we do know is that cow numbers continue to increase. Expansions continue to take place, and heifers seem to be available if one wants to pay the high price. The markets will be closed on Monday in observance of Presidents Day.
CHEESE:
One would like to think the block cheese price was near its low, and buyer interest would increase. However, buyers seem to have little reason to be aggressive as cheese supplies are sufficient for demand, and there is little expectation of lower supplies. Many plants are running on full schedules, with cheese output higher than a year ago.
BUTTER:
The butter price is expected to show further strength due to the large volume of unfilled bids remaining at the close of spot trading on Thursday. Butter is available, but sellers may hold for higher prices due to the strong buying interest. Churns are operating seven days a week to process the cream supplies, but inventory is not building.
