OPENING CALLS:
| Class III Milk Futures: | Steady to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 8 Higher |
| Soybean Futures: | 12 to 19 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 5 to 9 Higher |
MILK:
One thing is assured, and that is that milk production will continue to remain strong for a few months despite high feed prices. The Livestock Slaughter report will be released Thursday providing information of dairy cattle slaughter for March. However, even if slaughter has increased over the previous year or month, the Milk Production report showed an increase in cow numbers of 8,000 head over February. Production per cow was up 20 pounds and a moderate increase, but there is a strong potential for further increases as we move through spring flush. Most plants indicate they are already running at capacity and are urging patrons to hold the line on milk production. However, strong demand for dairy allows plants to move product quickly to the market, limiting the build of inventory. Rapidly increasing feed prices is a high concern moving into the growing year.
CHEESE:
Cheese prices are not expected to fall apart and trend lower, but they may have reached a level at which supply and demand may be somewhat balanced. There is sufficient cheese available for demand. Cheese plants are running at capacity, but having little difficulty moving product. The slight weakness of blocks and dry whey Wednesday might cause buyers to hold back for a bit.
BUTTER:
The March Cold Storage report will be watched for the amount of increase of butter inventory. Strong demand both domestically and internationally should have limited the growth of stocks. However, churning was active during the month with plentiful cream supplies. Price is expected to chop around at current levels.
