Opening Calls:
| Class III Milk Futures: | 4 to 10 Higher |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
Outside Market Opening Calls:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 4 to 7 Higher |
Milk:
Class III futures held well Monday, but they did not capitalize on the higher block cheese price. Most of what was accomplished was bringing futures off their lows into a mixed close. Class IV futures fared better due to the large increase of butter. Traders are in a quandary trying to determine potential price strength in the midst of increasing milk production. Milder weather has improved cow comfort and output per cow. Milk prices indicate a better outlook as August through October Class III futures have been able to hold $18.00 and above the past two days. The greater issue is high feed prices. Feed prices are not expected to decline very much for quite some time. The risk will be to the upside. Any glitch to an average growing season could send prices significantly higher. The recent Agricultural Prices report showed the impact this is having on profitability with income over feed falling to $7.14. The Global Dairy Trade auction will take place Tuesday providing an idea of world demand.
Cheese:
Cheese prices seem to have found support but are having a difficult time breaking out of the sideways trend. Demand has been good, but not good enough to tighten supply. Buying for the Farmers to Families Food Box program has been ongoing. We are about halfway through the period of this program, which will end April 30. So far, it has had virtually no impact on cheese prices other than keeping the market supported and inventory from growing substantially.
Butter:
There is much uncertainty and apprehension in the market Tuesday. The large price increase Monday with an unfilled bid at the close 13.50 cents below the market, is providing uneasiness. There is concern there may be a price void under the market. The large increase Monday could have been a flash in the pan as once the aggressive demand was filled, there was no one else to take up the baton. It is likely this may bring more sellers to the market Tuesday.
