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: | 8 to 12 Lower |
| Soybean Meal Futures: | $1 to $3 Lower |
| Wheat Futures: | 8 to 10 Lower |
MILK:
One thing is for certain and that is there is no excitement over any supply tightness. Dairy producers are hunkering down in hopes this will be short-lived. There seems to be more talk from producers that they are ready to throw in the towel as this time the low prices are severely impacting the farm due to high prices of goods and services. Added to that is the impact dry weather might have on available feed supply and prices for that supply. Of course, this could change significantly if the current dry weather pattern changes. It will be interesting to see the level of milk production in May when USDA releases the report Wednesday. As the lower milk checks are realized, culling may increase significantly, which could change the direction of the market over time.
CHEESE:
It is not likely cheese buyers will be aggressive Tuesday. If they are, it may be short-lived as supply remains readily available for demand. Low prices are not curing low prices by increasing demand due to higher retail prices. However, low prices will cure low prices as culling increases and milk supply tightens.
BUTTER:
There is not much expectation for butter price to move very much anytime soon. Supply and demand seem to be balanced with inventory higher than last year. Price is expected to continue its sideways trend.
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