OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 2 to 3 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Higher |
| Soybean Futures: | 5 to 9 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 8 to 10 Higher |
MILK:
It appears the weakness evident at the close of trading on Wednesday may dominate early trading Thursday morning. Bids and offers for Class III futures are significantly below Wednesday's close. The only contracts traded overnight were the March and April. March traded 3 cents lower with April down 44 cents. Traders are concerned block cheese price may retreat after moving back to the high of March 9. There is no other unexpected specific fundamental reason. Milk production is increasing seasonally as the spring flush begins. USDA will release the February Milk Production report on Friday.
CHEESE:
Traders are concerned block cheese price may have reached a threshold and decided to liquidate late on Wednesday. This may carry over to Thursday until further direction is seen from spot trading. The upside price potential may be limited
BUTTER:
Butter futures have taken a beating due to weakness in spot price. Butter has declined to the lowest level since Feb. 19. The question is whether the price is low enough to generate buying interest. It had been unexpected that the price would decline to this level. Trading activity in the spot market has been strong as sellers continue to move supplies at lower prices.
