OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 4 to 7 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 8 to 10 Lower |
MILK:
Milk futures were both higher and lower as traders seemed to be more interested in day trading rather than establishing any long-term positions. There has been little change in fundamentals, leaving traders guessing price direction. Milk futures have been in a downtrend following the weakness of underlying cash. However, cheese prices may have found a level where buyers may be interested in purchasing more aggressively to increase ownership for later demand. The Global Dairy Trade auction trade weighted average saw an increase of 3.2% after four consecutive events posting declines. USDA will release the March Milk Production report Wednesday. I estimate milk production up 0.8% with production per cow slightly higher than a year ago. I estimate cow numbers may be about steady with last month. I do not think farmers had increased culling much during March.
CHEESE:
Cheese prices may have found support at the current level. Choppy trading over the past two days gives the impression buyers may be more aggressive at this level, at least purchasing what is being offered during spot trading. However, the longer prices remain low and buyers can increase ownership for later demand, the less aggressive they will need to be later in the year.
BUTTER:
Active churning leaves sufficient butter supply available to the market. Ice cream production is pulling more cream supply, but there remains sufficient supply for butter production. Price continues to remain in the range established so far this year.
