OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | 5 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 7 to 14 Higher |
| Soybean Futures: | 2 to 5 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 8 to 15 Higher |
MILK:
The volatility of milk futures might be similar to last week if underlying cash prices move around similarly to what they did. Some major reports are behind us again providing some long-term market direction if the trends continue. However, there are factors that can influence markets significantly and make it look quite different in a short period of time. One major concern is the escalation of feed prices. Weather is having a large impact on grain prices as supplies are tightening and weather is delaying planting somewhat in the U.S. with dry conditions a concern for the Plains and Brazil. Feed prices are becoming a greater concern but will not have an immediate impact on milk production. Strong milk output is expected to continue through spring flush as cow numbers and milk per cow are high.
CHEESE:
Cheese prices may be moving into a sideways range as lower price generate buyer interest while higher price increasing selling interest. Demand is steady now that the food service industry pipeline has caught up to demand. This will need to be maintained as buyers need to fill orders and sellers need to continue to move product to keep inventory from building.
BUTTER:
Demand is strong, but steady. Churning is active with sufficient supply available. Cream price is increasing with supply not as readily available as it had been. Ice cream production has increased pulling substantial amounts of cream from supply. Price is below cheese again but will remain in close proximity. Inventory increased slightly in March indicating strong demand, but it still remains substantially above a year ago.
