OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 10 to 14 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 10 to 15 Higher |
MILK:
Overnight trading activity in milk futures was confined to the front-month March contract. Wide bids and offers were placed with no interest to move them. We know milk futures will not go higher forever and the question is just how high they will go until there is a price retracement again. Milk futures have already set new all-time highs. Milk volumes are increasing as spring flush gets underway. Manufacturers will welcome increasing milk receipts in order to satisfy demand as well as build some inventory for later demand. Bottling demand will be variable over the next few weeks as schools close for spring break. Spot milk remains available in the Central region at class or slightly below. Milk futures might take a breather today, at least until spot trading takes place.
CHEESE:
There were no unfilled bids or uncovered offers remaining at the close of spot cheese trading Tuesday. This will leave traders guessing as to price direction. Sellers may want to take advantage of these prices to move product rather than speculate and hold for higher prices. Buyers were aggressive Tuesday, which may indicate further strength if demand remains robust. USDA will release the February Cold Storage report Wednesday, which is expected to show growth of inventory.
BUTTER:
Price has not been quite as strong as cheese and butter remain in a range. Buyers are increasing ownership for later demand. Cream supply is sufficient keeping churns busy. Demand for cream from ice cream manufacturers is increasing. which will tighten supply available for churning. Inventory is expected to show an increasing on the cold storage report Wednesday.
