OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 6 Higher |
MILK:
There has been little change in fundamentals in the dairy market. Milk production continues to run higher than last year. Cow numbers are large with milk per cow higher. Demand is good while at the same time inventory is growing. This has kept the market somewhat balanced. Feed prices are quite a bit more expensive, but that has not had much impact on the desire for farmers to keep barns full and milk production rolling. There has been some indication that there could be a changing of the weather pattern. If that is truly the case, corn being planted at a rapid pace may result in a tempering of feed prices. However, there is a lot of growing season ahead and along with it, substantial volatility. Milk futures are expected to be choppy Tuesday with limited activity unless underlying cash moves significantly.
CHEESE:
Cheese prices are expected to be choppy for a period of time. Blocks should remain range bound as buyers and sellers continue to do business and are comfortable with the current supply and demand balance. Cheese production remains strong as plants absorb higher milk supplies. Milk is available on the spot market at a discount, but not to the extent that it has been other years.
BUTTER:
Retail demand has slowed somewhat as restaurant traffic has increased. Churning is active with some plants selling some cream to ice cream manufacturers due to higher prices for that cream. However, strong demand keeps butter production steady. Price is expected to remain choppy with a lower bias.
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