OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $4 to $5 Lower |
| Wheat Futures: | 4 to 6 Higher |
MILK:
Class III milk futures have not followed cheese prices lower in direct correlation. Block cheese price has nearly eliminated the gains in March and yet futures have not declined to the same extent. Traders seem to feel cash prices will find buyer interest and rebound again. Hopefully that will be the case. But with spring flush beginning, buyers may not be too anxious to step up and be aggressive in the near term. It is difficult to determine the level of milk production we will see over the next few months. But with cow numbers higher than a year ago, it should maintain production above a year ago.
CHEESE:
The weakness of cheese prices over the past week has been dramatic with prices falling faster than they had increased. There has been buying interest on the decline, but prices have not reached a level where buyers have turned aggressive. the lower unfilled bids Monday may indicate a level at which buyers may be more active. However, that will depend on how aggressively sellers will want to move their production.
BUTTER:
Price continues to remain in a range with little reason to break out of that range anytime soon. Production is meeting demand as well as building inventory. The industry is comfortable with growing inventory as a supply cushion desired after the record prices reached last year and a concern over a shortage. That is behind us with the current market balanced.
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