OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Steady to 2 Lower |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Class III milk futures tried to regain some of the loss from Friday, but underlying cash did not provide the support needed to rebound prices. The current market fundamentals do not suggest milk prices will see much upside potential as the calendar moves through spring flush. Increasing milk production leaves sufficient supply for demand even though milk production is lagging a year ago. Cow numbers are likely to continue to decline as milk prices remain low. The milk production report Wednesday will show the level of cow numbers compared to the previous month and year. Traders will watch to see whether there will be a significant decline in cow numbers. If so, it may trigger buying interest in milk futures.
CHEESE:
Cheese prices are anticipated to remain choppy as we move through the spring and milk production increases. Demand is not expected to improve by any large extent over the next few months. However, buyers could become more aggressive if there is an indication that the milk supply could tighten as the year progresses.
BUTTER:
Price is expected to hold or slowly trend higher. It will more likely hold as the demand for Easter is being shipped or has been shipped with regular demand than taking up the baton. The cream supply remains plentiful keeping churns active. Butter futures show no extra premium through the May contract.
