OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 4 to 8 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 4 Higher |
MILK:
Milk futures struggled yesterday due to lower cheese prices. Underlying cash is not going anywhere with any price increases being short lived. This has been the pattern for much of the year and leaves traders bearish even when spot prices increase. Improving milk production and plenty of spot milk available for anyone who has plant capacity leaves the market with plentiful supply. The offers of spot milk may increase as milk receipts continue to increase. Processors are not concerned over milk supply and buyers are not concerned over product availability.
CHEESE:
Cheese prices have been choppy over the past two weeks. This could indicate price is establishing a bottom as buyers are willing to buy near the current level. Sellers continue to offer cheese on the spot market rather than hold back for higher prices. The desire is to move cheese rather than build inventory at the plant level.
BUTTER:
Price is poised to break above the sideways trading range as buyers may position themselves ahead of the summer when cream supplies decline and butter output tightens. Demand is variable with retail demand termed as good while food service demand is variable. The March Dairy Products report to be released this afternoon with indicate the level of butter production during the month.
