Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
Outside Market Opening Calls:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | Mixed |
Milk:
Class III futures are showing some contra-seasonal price direction. Seasonally, milk prices dip into spring flush as greater volumes of milk are available to the market. Current futures show stronger prices in April and May than the March and April prices. May through November show a limited price swing of only 22 cents. It is not likely to remain that way as there are many factors that can change prices very quickly. If current futures prices hold through to settlement, the average will be the second highest since 2014. Milk production is increasing seasonally, running ahead of last year and moving toward spring flush. Demand is improving from the restaurant industry as they increase orders as an increasing number of people are returning to eating out. Stimulus checks are being sent out and government purchasing continues also adding to an increase in demand.
Cheese:
Traders are a bit cautious over cheese prices possibly reaching a plateau. However, price has been trending higher over the past few weeks as demand for fresh cheese is strong. Even though it is reported that inventory is increasing, fresh cheese demand on the daily spot market will be the price mover.
Butter:
Butter price has been languishing sideways since the beginning of the month, but Friday's price matched the high set on March 2. If price moves higher, it will move it to the highest price since July 27, 2020. It has regained a lot of ground since the beginning of February. Much of this can be attributed to increasing demand from export interest as well as the food service industry. Retail demand has increased ahead of the Passover/Easter season.
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