OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 6 to 8 Higher |
| Soybean Futures: | 8 to 12 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Even if underlying cash shows strength, traders may not be very aggressive in buying milk futures. The most recent price strength was short-lived leaving a bad taste in the mouths of traders. Those who bought contracts anticipated stronger buying because of reduced milk production and cow numbers in the milk production report. The opposite took place as supply and demand did not support trader's perceptions. Milk production is improving in some areas as spring flush begins. This is not expected to overwhelm the market, but it will keep a sufficient supply available for bottling and manufacturing.
CHEESE:
Buyers stepped back from the cheese market and continued to purchase on the way down. If sellers will not offer cheese any lower, buyers may step back in to purchase at the lower prices. However, the upside price potential may be limited due to more milk becoming available to the market.
BUTTER:
Butter demand is improving, which is keeping buyers more aggressive in the spot market. There may be a limit to price strength, but the market should remain supported. Grade A nonfat dry milk will be the anchor on Class IV futures. Nonfat dry milk weakness offsets the strength of butter.
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