OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 6 to 10 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 12 to 14 Lower |
MILK:
Further weakness of milk futures Tuesday will leave traders cautious Wednesday until further direction is seem from underlying cash. So far, cheese prices have been able to hold the recent price strength, which has provided support to Class III milk futures. The February Milk Production report may give pause to the recent strength as milk production was higher with cow numbers up significantly. This will assure sufficient milk supply to the market, along with spring flush soon to become more evident. Lower prices on the Global Dairy Trade auction Tuesday may have a negative influence on the overall market as international demand may slow.
CHEESE:
The slight decline of block cheese Tuesday did not have a large impact on the market. However, the concern is the low bid placed Tuesday at $1.80 with no buyer interest higher than that. This, along with the very low bid for barrels on Monday, might suggest buyers will hold back as current needs are satisfied. Of course, that can change from day to day, depending on demand and orders that need to be filled.
BUTTER:
Price is expected to continue to hold within a range as supply and demand seem to be balanced. Inventory has been increasing, but not to a level at which it is burdensome. Currently, the increase is welcomed as the industry wants to have a greater supply on hand. USDA will release the Cold Storage report Thursday, which is expected to show a strong increase in butter supply.
