OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 5 Lower |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 12 to 14 Lower |
MILK:
Class III milk futures fell further than the weakness of underlying cash would have suggested. However, such has been the nature of the market this year. Even minor increases or decreases of underlying cash prices have had a significant impact on futures. Even the decline Monday leaves both Class III and IV futures at very high levels, but it is always concerning to see price declines in light of high input costs. It is not expected that milk futures will decline very much but that will be determined by underlying cash prices which will be determined by demand. Demand is strong both domestically and internationally and not expected to fall anytime soon, but even if we do see lower demand, lower milk production would keep prices higher. Milk futures are expected to rebound somewhat due to it overreacting Monday.
CHEESE:
The weakness of blocks Monday could result in buyers pulling back a little as they wait for sellers to become more aggressive. If not, cheese prices should hold. There is the potential that cheese has reached a level at which with may hold for a period of time. Spring flush has begun, and more milk will be available for manufacturing over the next few months.
BUTTER:
Buyers and sellers are content to do business within the current price range. Churning is active allowing for demand to be met as well as inventory to increase. Cream remains well-priced even though there is greater demand from ice cream manufacturers. Orders for the Easter season have been filled and shipped. Price should remain choppy.
