OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 2 Lower |
MILK:
Class III milk futures were hit hard Monday as pressure from the weakness of cheese and dry whey increased selling. May futures fell below $17.00 and the lowest it has been since Nov. 17, 2021, when the contract was listed but had very limited activity. This moves cheese to a low price, which may increase the interest of buyers as they look ahead to later demand. However, sellers continue to offer cheese on the spot market, indicating they are having a difficult time moving all of it through regular channels. Overall demand is termed as good, but supply is exceeding demand, resulting in lower prices. Lower prices should stimulate demand. Milk production is steadily increasing as spring flush unfolds.
CHEESE:
The weakness of blocks Monday without any buyer interest certainly was not supportive to the market. As long as sellers offer cheese on the spot market, buyers will probably hold back and continue to purchase the offers. USDA will release the March Cold Storage report Tuesday. This could show an increase of American cheese inventory since December.
BUTTER:
Price continues to remain in a range and is expected to stay that way for a while. This is little to cause a higher or lower trend to develop. Buyers and sellers are comfortable doing business at the current level. Churning has been active with inventory expected to show an increase on the Cold Storage report Tuesday.
