OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 8 to 10 Lower |
| Soybean Futures: | 15 to 19 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 12 to 15 Lower |
MILK:
It is difficult to find anything supportive in the dairy markets within their own fundamentals. However, support could be seen over time as the government has posted a solicitation for cheese for food banks and schools that could total 47 million pounds over time. This will not take place all at once but will be solicited over time and in multiple solicitations. Parts of this are likely some of the usual purchases they make with some being an addition to the usual. This would utilize quite a bit of cheese that is available to the market over and above regular demand. This was posted last week and did not impact the market. We cannot expect this to provide support anytime soon. USDA will release the April Agricultural Prices report Wednesday, which will provide prices used in the calculation of income over feed for the Dairy Margin Coverage program.
CHEESE:
It is likely buyers will not be very aggressive Wednesday. Lower bids will likely be placed at the beginning of spot trading as buyers will see if sellers remain aggressive. Cheese is readily available to the market, leaving buyers complacent.
BUTTER:
Nothing much is expected during spot trading today as the price remains entrenched in a sideways pattern. Demand is steady. Production remains strong as cream is available. However, cream supply should be tightening as ice cream production increases and summer weather impacts butterfat production.
