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 2 Higher |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 2 Higher |
MILK:
There does not seem to be a bottom in the milk market. Prices continue to decline following the cheese prices lower. Sellers of cheese continue to offer loads on the spot market. As long as those loads continue to come, buyers will hold back and purchase what is being offered. There is no tightness of supply. Milk production is improving seasonally with production remaining higher than last year. Low milk prices may increase culling over the next few months, possibly similar to what took place in late 2021. Spot milk price continues to remain from $5.00 to as much as $10.00 below class, making it very attractive for manufacturers to purchase milk to keep plants full.
CHEESE:
The large amount of offers to sell barrels that remained at the close of spot trading Tuesday may pressure the market further Wednesday. Buyers of cheese do not need to be aggressive but are purchasing cheese without having to bid up for it and have been continuing to purchase cheese at lower prices. Sellers want to move cheese even at these lower prices.
BUTTER:
There has been no excitement in butter for quite some time. Price continues to remain in a sideways range. The slight decline of inventory in March will not influence the market as stocks remain 3% above a year ago. Ice cream production is increasingly utilizing some of the cream supply. However, there is sufficient available for strong butter production.
