OPENING CALLS:
| Class III Milk Futures: | 8 to 15 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 5 to 9 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 4 to 8 Lower |
MILK:
Milk production is slowly improving but running below year-ago levels. Currently there is sufficient supply for demand. However, the industry is concerned over milk supply later in the year when demand generally increases. Buyers of cheese and butter have been looking ahead and purchasing accordingly to ensure supply if milk tightens. Higher milk prices have not yet resulted in the expansion of cow numbers. The shifting of cows continues as farms go out of business with those cows moving to larger farms. Some dairy farm expansions are taking place, but it not increasing overall cow numbers. The trend for larger farms continues and will continue.
CHEESE:
Cheese prices show no sign of slowing down. Higher prices have not resulted in price resistance but only seems to make buyers more aggressive. Continued strength brings buyers into the spot market wanting to purchase supply before price moves higher. Prices are moving contra seasonal with cheese futures showing the highest prices in summer months.
BUTTER:
Churning is active and sufficient to satisfy demand as well as build inventory from month to month but not year over year. Both domestic and international business remains strong. Easter demand has been met with most turning their attention to later demand. Price is expected to remain supported but choppy.
