OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 7 Higher |
| Soybean Futures: | 4 to 8 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 6 to 9 Lower |
MILK:
Traders will not be too anxious to buy into milk futures unless they see a bottom in spot prices. The market is not expected to continue to fall but it is unclear as to how much prices might retrace. Spring flush is underway but that is not the reason for the recent bearishness. Buyers of the physical commodity have been aggressively purchasing ahead and have reached a point at which they may be comfortable for the time being allowing them to step back from the market due to high prices. Futures prices have fallen significantly over the past two days but continue to remain historically high. However, this is little consolation in light of substantially higher costs of production. USDA will release the March Federal Order class prices Wednesday. Traders anticipate a Class III price of $22.42 and a Class IV price of $24.85.
CHEESE:
The sharp decline of cheese prices this week might entice buyers to step back in to purchase supply for anticipated future demand. Concern remains over milk supply as the year progresses that could impact cheese supply if demand remains strong. Buyers are purchasing earlier than usual to assure supply later.
BUTTER:
Supply and demand seem to be balanced for the time being. Price continues to move within a tight sideways pattern as buyers and sellers accomplish business. Churning remains active, which should provide sufficient supply for demand and allow inventory to increase in the near term. Price is expected to remain choppy.
