OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $0.50 to $1 Higher |
| Wheat Futures: | Mixed |
MILK:
Trading was not active overnight as there was little to influence price direction. Futures have declined substantially this week, with the potential for some short-covering to take place ahead of the weekend. There is no concern over an unexpected change in fundamentals that would cause traders to liquidate their short positions, but the substantial declines this week have resulted in the market being overdone to the downside. The average soybean meal price for March will be released Friday morning, providing the last price needed to calculate income over feed for the Dairy Margin Coverage program.
CHEESE:
Cheese is expected to remain choppy, with the price remaining in a range. Cheese production is strong, supplying sufficient cheese to the market. Demand is steady, which has kept inventory below that of a year ago. This keeps the upside price potential limited and provides support below the market.
BUTTER:
The butter price remains in a downtrend. It is uncertain as to where support may be found. As long as manufacturers continue to move supplies to the spot market aggressively, buyers will hold back and purchase at lower prices. End users see no reason to be concerned about supplies.
