OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 6 to 12 Higher |
| Soybean Futures: | 8 to 12 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 4 to 6 Higher |
MILK:
Class III futures succumbed to pressure Monday due to the weakness of barrel cheese price. Milk production continues to improve as spring unfolds. Plants are receiving increasing volumes of milk, but so far have been able to handle the increase or have been able to find somewhere to go with it. There are some backups in delivery of milk to plants as wait times have increased. Strong demand continues to support prices. Milk futures are expected to drift prior to cash Tuesday as traders remain uncertain over underlying price direction. The Global Dairy Trade auction will take place Tuesday morning, providing direction of world prices.
CHEESE:
There is some concern that it may be difficult for cash prices to move higher as the market seems to be rather balanced. The surge for purchasing supply to refill the restaurant pipeline seems to be over. Demand from the food service industry may settle down to maintaining the level of supply needed to meet that demand. USDA will release the March Dairy Products report Tuesday afternoon. Dairy product production is expected to have been higher than the previous year.
BUTTER:
There has not been much change in fundamentals to indicate a change in the market. Price has slowly slipped lower after establishing the high in mid-April. Demand from the food service industry pushed price higher in February and March, but it also reduced retain demand to some extent. Exports have been strong, but inventory remains large. It may take lower price to increase product movement.
