OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 4 to 7 Lower |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 3 to 5 Higher |
MILK:
There is not much to say about the milk market as futures are falling due to the weakness of underlying cash. Milk supply is plentiful to satisfy bottling and manufacturing needs. Milk production continues to remain above year earlier levels as cow numbers are higher and production per cow continues to increase. Feed prices are higher, but that has yet to have any impact, if at all. Good quality alfalfa hay prices are escalating in those areas that are in drought conditions. That is one commodity that may have a significant impact on milk production and farm survivability over the coming year unless weather would change dramatically in those areas. USDA will release three major reports on Thursday. The Milk Production, Cold Storage and Livestock Slaughter report all on that day.
CHEESE:
Barrels are flirting with the lows back on Feb. 23. If price breaks below $1.3825, it will move back to the lowest level since August 2020. Last year, price rocketed out of that level dramatically, but that pattern will not be repeated this year because of different market forces. It is critical cheese prices find support soon or further liquidation will take place.
BUTTER:
The market seems to be better supported than cheese. The supply and demand balance is more closely aligned. There is some concern over the rise of recent COVID cases and its impact on the economy, but a rise in cases may be expected due to the rise of a variant virus. However, it is not expected to result in another shutdown of the economy. The decline of butter demand at the retail level has been made up for in the food service industry. This should keep price somewhat steady.
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