OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 7 Higher |
| Soybean Futures: | 10 to 15 Higher |
| Soybean Meal Futures: | $2 to $5 Higher |
| Wheat Futures: | 3 to 5 Higher |
MILK:
Class III milk futures are trying to move back up to $20.00, but underlying cash has not been able to provide sufficient support. Much of the support seem to stem from ever-increasing grain prices, which will have an impact on milk production over time if feed prices continue to increase. There may be a delay as it may not have a significant impact until later in the year, depending on milk prices as well as the impact weather will have on crop production. Current milk production is strong and is expected to remain above year-ago levels through much of the year. Cow numbers are the highest since 1995 with current demand for cows and replacements very strong. However, this may slow in the near future if grain prices continue to escalate.
CHEESE:
Spot cheese prices are not expected to move much Wednesday. Buyers and sellers seem comfortable doing business at the current level. Cheese output is strong and meeting increased demand as well as moving some to inventory. Blocks have been in a sideways range and may remain that way for a period of time.
BUTTER:
Price has been slowly weakening as the supply has caught up with demand. Price on the Global Dairy Trade auction Tuesday declined 12.1%, which could indicate a weakening price trend. However, demand has increased as the pandemic has increased consumer preference for butter.
