OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 6 to 8 Lower |
MILK:
Milk futures continue to see a headwind as underlying cash is not supportive to stronger milk prices. Dairy products remain plentiful with sellers willing to move them to the market to reduce plant inventory rather than hold supply for potential increased demand later in the year. The idea this year seems to be to hold reduced inventory due to high storage costs. With sufficient milk supply and increasing milk production, manufacturers feel confident milk supply will remain abundant as the year progresses. Culling has not yet increased even though cull cow prices are very strong. This may keep milk production strong through much of the year even though milk prices are quite a bit lower than a year ago. The market will need to prove itself before a higher trend can develop.
CHEESE:
Sellers continue to bring cheese to the spot market. Buyers continue to post lower bids wanting to take advantage of the current desire of sellers to move supply rather than hold higher inventory. Cheese production is strong with manufacturers wanting to move product rather than build inventory at the plant level.
BUTTER:
Buyers and sellers remain comfortable in the current price range. Business is being done with demand being met easily. Inventory is not much higher than a year ago, keeping the market balanced. Cream supply is sufficient for production but is expected to tighten as the spring and summer progress and hot weather impacts butterfat levels.
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