OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $3 Lower |
| Wheat Futures: | 3 to 4 Lower |
MILK:
Traders feel confident about continued support for milk prices based on the February Cold Storage report showing American cheese, total cheese, and butter inventories below a year ago. The weakness in the block cheese price on Wednesday had no impact on Class III milk futures. The strength in dry whey and optimism over better milk prices provided the support for traders to be aggressive buyers. This optimism continued in the overnight trade, but may run into resistance as traders may take profits on long positions in case of further weakness in the underlying cash. The pattern of the past few months suggests this possibility.
CHEESE:
It was interesting the block cheese price declined even though the Cold Storage report was supportive of the market. However, the spot maket is what is happening currently. Increased cheese production in March may have added significantly to inventory.
BUTTER:
Surprisingly, the butter price is not being supported due to inventory being substantially below a year ago. Buying interest is strong in the spot market, but manufacturers are aggressively moving supplies. This keeps the supply readily available for the market.
