OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Thursday's weakness of the underlying cash did not put as much pressure on milk futures as would have been expected. However, overnight trade indicates further weakness today. There has been no fundamental change in the market. This may keep spot prices in a range and Class III milk futures under pressure. Class IV futures have benefited from continued strength in nonfat dry milk. Cow numbers continue to increase with farm expansions taking place. This is likely to continue under the current market fundamentals.
CHEESE:
Cheese prices have been unable to break out of the trading range despite good domestic and international demand. The current supply is sufficient, leaving buyers unaggressive. There is no concern over a tight supply. Prices are expected to move sideways at least through the spring flush.
BUTTER:
There is caution now that the spot butter price slipped on Thursday; it could go back down to the lows or below. That has been the previous pattern. The price is certainly low enough to generate buyer interest, but so far, they have not had to be aggressive.
