OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 6 to 8 Higher |
| Soybean Futures: | 6 to 10 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 20 to 25 Higher |
MILK:
It appears the week will begin with greater optimism over continued higher prices. There is little reason to expect any significantly bearish news that would cause any substantial retracement of prices. We know that anything could happen, but current fundamentals do not suggest anything significant. Reduced milk production is not just confined to the U.S. but also in many other countries, which has resulted in greater export demand. Domestic demand has not yet reached a level of price resistance, keeping cheese moving. Schools are back in session after spring break and the holiday, which will keep bottling demand steady for the next month or so before schools will begin winding down for the summer. There are two major reports this week. The March Milk Production report will be released on Wednesday with the March Cold Storage report released on Friday.
CHEESE:
Cheese prices continue to climb as buyers intend to increase ownership in preparation for fall demand. Current demand is good, keeping buying active, but buyers also remain focused on increasing supply for later demand. Current supply is sufficient, but the fear of tighter supply is driving more aggressive buying ahead of time.
BUTTER:
Price continues to remain rangebound with buyers and sellers comfortable at the current price level. Retail will assess product movement during the holiday and place orders accordingly. There is little expectation for supply tightness or stronger prices anytime soon.
