OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 6 to 10 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | Mixed |
MILK:
It has been a brutal week so far as not only has declining cheese prices put pressure on Class III futures, but also the discontinuing of the Farmers to Families Food Box program. The Food Box program news seems to have been absorbed by the market, but the weakness of spot cheese might continue. There is more concern developing over the potential for lower milk prices relative to current or possibly higher feed prices. That will not impact milk production anytime soon as there is still a lot of time for acres to be planted. It will be up to weather to determine prices. Current milk production is strong and continues to improve. The current level of milk futures is relatively good through the rest of the year, which will keep cow numbers high and milk production strong. The March Milk Production report will be released next week Wednesday.
CHEESE:
Cheese prices have moved back down into the sideways range they had been in for quite some time. Whether further weakness will unfold is yet to be seen but anticipated. Buyers have not shown up to purchase blocks for the past three days. They are waiting for lower prices as demand for fresh cheese has been satisfied for the time being.
BUTTER:
Butter demand continues strong from both the domestic market as well as the international market. Price remains competitive on the world market, which has been keeping exports strong. Demand from the food service industry has improved substantially over the past few months. Price may begin to settle into a sideways trading range for a period of time.
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