OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | Steady to 1 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 6 Higher |
MILK:
Class III milk futures will have much to recover from after the decline last week. The anticipation of strength due to lower milk production compared to last year was short-lived as buyers on the spot market did not share the same concern. For now, there is sufficient milk supply to meet bottling and manufacturing needs. Milk production is slowly increasing seasonally, which eliminates the concern over supply for the time being. Lower prices will cure lower prices, but the duration of the lower prices will be difficult to predict.
CHEESE:
Cheese prices should find a bottom as prices may move to levels at which buyers will be willing to purchase and pay for storage. The milk supply may not be as available during the summer and fall when demand generally increases, which then would improve milk prices. The futures market has some of that already factored in with cheese futures around $0.40 per pound above the current spot price.
BUTTER:
Price is expected to remain in a range for a time. Easter demand has been filled and regular demand is now a factor in the market. Supply and demand seem to be balanced for the time being. USDA will release the February Cold Storage report Monday afternoon, comparing inventory to January and a year ago.
