OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | 1 to 4 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Traders are unsure how much strength there will be in underlying cash as the next few months unfold. Demand generally is slower, but milk production is lower than a year ago. This may balance supply and demand for the time being. Demand needs to improve to see milk prices improve. The tightening heifer supply may have a longer-term impact, which could eventually reduce milk supply and support milk prices. That may take some time unless buyers step up more aggressively to purchase dairy products for demand later in the year. However, the attitude has been to limit inventory to avoid paying for expensive storage costs. Milk futures may chop around for a while, following the lead of underlying cash.
CHEESE:
The increase in cheese prices Monday did not change the market much due to the recent weakness that has taken place. There is greater interest in barrel cheese, which has moved barrel price above blocks. That may be temporary as demand is generally reduced during this time of year. Cash is expected to remain choppy.
BUTTER:
Butter should have support in the market as domestic demand is good and churns are looking ahead and preparing for the Easter season. There is some interest in building inventory while some do not want to build inventory and are selling some cream rather than churning it. Some of this depends on the location and how much contracting has been done.
