OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 10 Lower |
| Soybean Futures: | 10 to 15 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 16 to 20 Lower |
MILK:
Even though Class III futures were higher than the calculation of underlying cash, they did close mixed at the end of the day due to the further increase of underlying cash prices. Traders remain bullish of prices but yet are concerned over a slowing of demand. Milk production is termed as steady to higher depending on the region. Overall milk supply is sufficient for demand from both bottling and manufacturing. The availability of cows at sale barns is quite a bit tighter as many have gone to slaughter over the past number of months. However, prices of springing heifers are reasonable. Farmers may be cautious about adding cows too quickly only to have milk prices fall back again along with the uncertainty of where feed prices will go. Milk futures may be under some pressure until spot trading provides further direction. Global Dairy Trade auction prices are expected to be higher again Tuesday.
CHEESE:
Barrel cheese buyers have been more aggressive resulting in an inverted block/barrel price spread again. The rebound of dry whey provides support to Class III milk futures. It also indicates demand remains strong. Cheese demand has slowed for some varieties but remains good overall. Production of cheese is strong as milk is available.
BUTTER:
Price is looking to regain much of what it lost two weeks ago as buyers have turned their attention to Easter demand and well as looking ahead to second quarter demand. Churning as active as cream is available. International interest remains strong. Buyers may be aggressive in the spot market again Tuesday.
