OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 4 to 7 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 10 to 14 Lower |
MILK:
There had been some hope milk prices were going to increase, but that may be delayed a bit as demand may be balanced with current supply. Milk production is holding well albeit below a year ago. That is paired with a slower demand period of the year keeping a sufficient supply available for demand. Class III milk futures show a slow increase in price as the year progresses, but not by a large amount with both Class III and Class IV futures showing an increase of about $1.00 per cwt. Of course, that can change one way or the other as the year progresses. USDA raised its estimates for milk prices in the recent World Agricultural Supply and Demand report. We can only hope that comes to fruition and more as milk prices need to improve substantially to allow dairy farms to improve equity. Trading may be light until spot trading shows some direction.
CHEESE:
Cheese is expected to remain choppy for a period as buyers and sellers take care of business. Buyers do not want to purchase much ahead to limit inventory and the storage costs of holding the cheese. Sellers want to move supply quickly rather than build inventory and pay for storage. This leaves the market running closer to a supply and demand balance and keeps price movement limited.
BUTTER:
Butter is in good demand and should continue to support price. However, the price may have a limited upside in the near term. Demand for the Easter season is generally strong, but churns and buyers are already preparing for it which may limit further price gains. Price should remain supported, but choppy.
