OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 7 Higher |
| Soybean Futures: | 8 to 12 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 35 to 45 Higher |
MILK:
The heavy selling pressure that gripped Class III futures Monday did not follow through overnight. Traders seemed to think the lower prices adjusted futures in line with underlying cash. Class IV futures will hold steady until cash provides direction. Traders are torn between the impact higher feed prices could have on milk production and the potential for dairy prices to become too high that it limits demand. For now, milk production is increasing seasonally but at levels below a year ago. Production will continue to increase during spring flush but will not overwhelm manufacturing capacity. Steady demand should keep prices supported.
CHEESE:
The divergence of cheese prices Monday and the inability of spot prices to hold initial gains, leaves uncertainty as to price direction Tuesday. Prices are not expected to fall back very much but may remain rangebound in the near term. Overall demand for cheese remains good. The Global Dairy Trade auction will take place Tuesday.
BUTTER:
Butter production is steady to higher as churns are active. Cream is available but not quite as abundant as it had been. Ice cream production is increasing seasonally utilizing some of the available supply. Easter order have been shipped with buyers turning their attention to ongoing demand and expected demand later in the year. Price should remain choppy.
