OPENING CALLS:
| Class III Milk Futures: | 10 to 25 Lower |
| Class IV Milk Futures: | 5 to 15 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Pressure continued in Class III futures overnight as the decline of spot prices Monday increased the concern over price potential. There is a sense that the downside price weakness may be limited, but that does not eliminate the concern over where the market will move to before it rebounds. Milk production will not slow down due to a dip in milk futures. In fact, milk production is increasing seasonally with the potential to move above year earlier levels over the next few months. Tuesday is the last day to trade April dairy futures and options with the Federal Order class prices announced Wednesday. The Global Dairy Trade auction will take place today.
CHEESE:
Sellers continue to bring product to the spot market, allowing buyers to purchase supply for immediate demand as well as purchase for future needs. Without the need for buyers to be aggressive, the market has little reason to move higher. Cheese production is steady and able to meet demand.
BUTTER:
Price rebounded later last week but may resume the trend lower. There is sufficient supply to meet demand as well as build inventory. It is unlikely inventory will surpass the level of last year, but supply will remain sufficient. Retail demand continues to show some weakness.
