OPENING CALLS:
| Class III Milk Futures: | 8 to 15 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 5 Higher |
| Soybean Futures: | 4 to 10 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 4 to 6 Higher |
MILK:
The strength in the overnight Class III milk contracts might be the result of the spot block cheese and butter price bouncing from the low during spot trading on Wednesday. However, it may be traders liquidating their short positions to take a profit after the recent weakness. Traders continue to trade on a short-term basis by scalping the market if they realize profits. The selling pressure of the past two days was the result of the weaknes in spot butter and cheese prices, but futures may have been overdone to the downside. The seasonal increase in milk production will keep sufficient milk available for bottling and manufacturing.
CHEESE:
Cheese prices may be low enough to stimulate aggressive buying interest. However, without the concern over supply, buyers may continue to hold back and purchase as it is offered to them rather than bidding higher to increase ownership. More milk will find its way to the vat or the spot market over the next few weeks as schools close for spring break. This will not overwhelm the market but will increase availability.
BUTTER:
The bounce of the spot butter price from the low on Wednesday was impressive and provides hope that buyers will be aggressive today. However, butter production is strong, and plants may want to move supplies to the spot market to limit the increase of inventory at the plant level. The price could remain lower and choppy.
