OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 2 Lower |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Class III milk futures have regained a large portion of what was lost during the later part of March. If current Class III futures come to fruition for May, June and July; they would surpass the record high price of 2014. There has been much discussion whether farmers will respond and push milk production by improving production per cow or increasing cow numbers. They may look to increase production per cow but adding cow numbers may take a little while as high feed prices may be a deterrent. Replacements are not abundant, and cattle prices are strong. Income over feed is good but that is not taking into account the higher costs of good and services. The cost of production has risen substantially. Cow numbers may be in a holding pattern for a time.
CHEESE:
Cheese prices moved above the previous high and back to the highest level since Nov. 6, 2020. It is difficult to predict whether demand will continue to remain strong or if price resistance may be near. Dry whey will determine part of the strength of Class III futures in the near term.
BUTTER:
There is no indication as to where butter price will go. It has traded within a range during the past month as buyers and sellers have been comfortable at current levels. Traders feel price will remain in a range for much of the year as futures carry no premium to cash and carry a discount later in the year. Spot price is expected to remain choppy.
