OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 12 Lower |
| Soybean Futures: | 10 to 20 Lower |
| Soybean Meal Futures: | $2 to $4 Lower |
| Wheat Futures: | 12 to 18 Lower |
MILK:
The increasing of milk futures Tuesday was a bit subdued as traders were unsure what to do based on the movement of underlying cash. Cash prices traded both higher and lower depending on the commodity before closing spot trading. This sent mixed signals about the market keeping traders rather cautious. There is information that spot milk prices are lowering as there is some difficulty finding enough trucks to haul milk from one area to another. Increasing milk production is resulting in increased wait times for trucks to unload at plants. This may only become worse as spring flush progresses. Demand from bottlers is steady with demand for cheese remaining strong.
CHEESE:
Cheese output is keeping pace with demand while some is moving to inventory. Increasing milk receipts at manufacturing plants that are already at capacity, is beginning to cause a problem. Plants are receiving offers for spot milk at attractive prices but are turning them away due to the inability to process any more. So far, this has not had a significant impact on the market.
BUTTER:
Price may have a difficult time reaching back up to the highs again for a period of time. Demand from the food service industry has been growing, but the pipeline of supply may have been filled to the point where it will need to be maintained from here. This may allow churning to keep up with demand. Price is expected to move in a sideways pattern for a bit.
