OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Higher |
| Soybean Futures: | 4 to 7 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 14 to 20 Higher |
MILK:
Class III milk futures continue to slowly regain the previous losses in the April through September contracts. October and later contracts made new highs last week. Class IV futures are holding well but have not been able to make new highs. Class IV futures continue to hold a premium to Class III, but the gap is narrowing in nearby months due to cheese prices increasing more than butter price. Overnight futures indicate further gains Monday. Milk production is slowly improving as we move forward to and through spring flush. Milk production will run below year earlier levels and for right now, there is sufficient milk for both bottling and manufacturing with some spot milk still able to be purchased at a discount. Some of this seems to be the result of labor issues with plants not being able to handle the milk they have due to a less than desired workforce. One would have thought this would have changed by now, but such is not the case.
CHEESE:
Cheese prices have not found a level of resistance as prices push higher regaining more of losses that took place back in 2020. Prices continue to rise as buyers purchase to increase ownership earlier rather than later. There is an underlying fear over cheese supply as the year progresses. Continually increasing feed prices may result in limited or no growth in the nation's dairy herd. There could even be further contraction of cow numbers tightening milk supply further.
BUTTER:
Exports continue to remain strong as price is attractive to international buyers. Production in New Zealand is lower reducing their exports resulting in buyers looking to the U.S. Even with increased exports, domestic demand is being met and inventory is improving from month to month. However, inventory is not increasing in comparison to the previous year. Price should remain supported.
