OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | Mixed |
MILK:
The strong gains of cheese and the large increase of Class III milk futures created excitement in the market Tuesday. However, it is doubtful that same excitement will continue. Futures may increase if buyers still need to pick up cheese on the spot market, but the gains may not be as great. In fact, sellers may be more aggressive as they want to take advantage of the higher prices to move product. Milk supply is plentiful, resulting in increased production of dairy products. With spring flush just around the corner, milk supply will remain plentiful during that period. Demand will need to improve to keep inventories from building. Class III futures are back above Class IV in contracts through September.
CHEESE:
The unfilled bid in spot block cheese Tuesday may show up Wednesday, but with the large increase of price, the buyer may wait to see if sellers may be more aggressive due to the higher price. Or the buyer may find a load out in the country and not need to come to the spot market today. Current higher prices may reach some buyer resistance.
BUTTER:
The market is comfortable at the current level, which may keep buyers and sellers satisfied. Increased supply and higher output could keep the market sideways for an extended period of time. Demand remains steady but not quite at the level that was earlier anticipated. Much of the needs for Passover/Easter have been contracted and have been, or will be, shipped to the required destinations.
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