OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 2 Higher |
| Soybean Futures: | 10 to 14 Higher |
| Soybean Meal Futures: | $1 to $3 Higher |
| Wheat Futures: | 3 to 4 Lower |
MILK:
Milk futures may move in a sideways pattern for a period of time. Cheese prices have come back from the large decline a few weeks ago and might be at a level where buyers and sellers are comfortable. This may keep futures choppy as they move with the daily price fluctuations of underlying cash. USDA extended the sign-up period for the Dairy Margin Coverage program to March 25. Enrollment in the program is at 48% of what it was last year, prompting USDA to extend the enrollment period. It is not surprising that there may be less participation this year due to the potential of little to no payments under the program if the current trend continues. It is not surprising that USDA extended the sign-up period as they have done that ever since the program was implemented. This provide another month for farmers to decide if they want to be a part of the program.
CHEESE:
Block cheese price has held steady the past two days despite some fluctuation of barrels. Buyers and sellers might be comfortable at the current level and may take care of business without much price movement. USDA will release the World Agricultural Supply and Demand report Wednesday morning, which will provide their estimates of milk production, milk prices and product prices for the year.
BUTTER:
Price may chop around here for a bit as current supply and demand seems to be balanced. Churning is increasing as cream is becoming more available, but supply will not overwhelm the market anytime soon. Overall demand remains strong. There are some reports of inventory beginning to increase but those reports are limited and the increases minor. It will take a while to rebuild inventory.
