OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 lower |
| Soybean Futures: | 4 to 7 Higher |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 2 to 4 Lower |
MILK:
The weakness of cheese prices Monday pushed Class III futures lower. Traders will be cautious Tuesday morning, resulting in light trading activity due to the uncertainty of further weakness. Buyers of cheese may hold back, waiting to see if sellers will remain aggressive. After all, fundamentals have changed very little since last week. Milk production has held well this winter with most areas of the country experiencing a relatively mild winter. There have been periods of adverse weather, but it has not affected milk production very much and when it did, it was for a short duration. Milk output continues to exceed year-ago levels. USDA will release the World Agricultural Supply and Demand report Wednesday, which will provide their estimates of milk production, milk prices, and product prices for the year.
CHEESE:
The weakness of cheese prices Monday may leave buyers on the sidelines Tuesday, waiting to see whether sellers will remain aggressive. Prices continue to follow the pattern of the past few months. Price increases are short-lived due to sufficient supply and no concern over a supply lightness. Demand remains variable across the country. Inventory is increasing seasonally.
BUTTER:
There has recently been more interest from buyers to contract supply for later in the year. Price is attractive and likely not going to decrease much further than it already has. However, inventory may increase more than usual if the current level of manufacturing holds. Cream is readily available, keeping churns running on full schedules. Price is expected to continue to be choppy.
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