OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 10 to 15 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 7 to 10 Lower |
MILK:
Milk futures suffered a blow Tuesday with most spot categories in the cash market lower. The higher barrel price provided little support due to it falling back from the highs. The trend on the March Milk Production report indicates farmers are increasing cow numbers. There is a desire to increase production to take advantage of higher milk prices. A positive cash flow is being realized despite a higher cost of production on many farms. This trend should ensure sufficient milk supply through much of the year. Trading is expected to be light prior to spot trading with traders not likely to pick a direction.
CHEESE:
Buyers of barrel cheese may be a bit hesitant during spot trading, waiting to see if the late selling pressure Tuesday will carry through Wednesday. Spot prices may be choppy as buyers and sellers take care of business in a somewhat balanced market. Inventory has not been growing, but there is sufficient supply available. Dry whey futures were weaker overnight in anticipation of a further price decline.
BUTTER:
Buyers have sufficient supply of butter on hand for current demand as well as buyers being comfortable with purchases already made for later this year. Slight slowing in retail sales is trickling through the market. Further price weakness is expected.
