OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Lower |
| Class IV Milk Futures: | 10 to 15 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 4 to 5 Higher |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | Steady to 1 Higher |
MILK:
Not much is expected in the market Friday. The negativity of the week will be difficult to overcome unless there is unexpected strength in the spot markets. With the aggressive selling that has taken place this week, it is doubtful buyers will turn aggressive. The April Milk Production report will be released this afternoon, and it is not expected to be very supportive to the market. I estimate milk production to be 2.0% above a year ago due to higher cow numbers and production per cow. I estimate cow numbers to be 5,000 head more than in March.
CHEESE:
The weakness of cheese on Thursday may result in buyers continuing to hold back today. Sellers are aggressive and intend to move supplies as quickly as possible and at lower prices. Cheese production is strong, but demand may be slowing due to higher fuel and food prices.
BUTTER:
Sellers remain aggressive, offering a substantial volume of loads to the spot maket. It is not that demand has declined, but that supply is plentiful and manufacturers do not want to have inventory build at the plant level. Buyers are willing to purchase, but are not willing to buy aggressively.
