OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 6 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 20 to 30 Lower |
MILK:
Milk futures have posted two solid days of gains supported by underlying cash. Traders may hold back Wednesday morning until further direction is seen for the cash market. The rebound of Class III futures has not changed the direction of the market as it has moved contracts back into the trading range they had been in for a few months. Class IV futures are moving higher, but still have a way to go before they get back up to where they had been. Both Class III and Class IV futures are remaining closely aligned with each other. USDA will release the milk production report for the month of April on Wednesday afternoon. I estimate milk production to be 0.4% below a year ago with cow numbers up 4,000 head from the previous month.
CHEESE:
Barrel cheese moved above the previous high of April 14, moving to the highest level it has been since Nov. 4, 2020. Blocks need to increase 3 cents before price moves back to the highest level since November 2020. Buyer interest may stall out again as the recent rise of prices may reach a threshold. Higher prices may find some consumer resistance in the present economic market.
BUTTER:
Price showed some nice increases over the past week, moving it back near the top of the trading range price had been in for a period of time earlier this year. Steady churning and overall steady demand leave little reason for price to establish a strong trend one way or the other. Butter price on the Global Dairy Trade auction averaged $2.61 per pound Tuesday, below the current cash price. This may limit some export business.
