OPENING CALLS:
| Class III Milk Futures: | 3 to 6 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 2 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 6 Lower |
MILK:
April through July Class III futures are headed back down to contract lows. The temporary bullishness of the market has been eliminated with traders uncertain over price strength in the near term. It is the time of year when milk production may increase as spring flush takes place, as well as the time of year when demand is slower. The longer milk prices remain low, the more milk production and cow numbers may decline. The lower supplies of heifers may result in shortage if milk prices move higher and farms want to fill stalls or expand. They have a difficult time finding animals. Raising replacement heifers may eventually be more profitable than breeding for beef or dairy. The Dairy Products report released Monday will not be a market mover as it has already been absorbed into the market.
CHEESE:
Lower cheese prices have not yet resulted in buyers stepping up to the plate to purchase. Current cheese supplies are readily available with cheese production strong due to sufficient milk supplies. Buyers have been purchasing but have not needed to be aggressive. Cheese has been added to aging programs, but buyers are careful not to build too much inventory.
BUTTER:
The price rebound in butter was expected due to the potential for increasing demand as the Easter season approaches. The price increase Monday may bring more buyers into the spot market to purchase ahead of the price moving higher. This may result in a greater bounce.
