OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 6 Lower |
MILK:
April through July Class III futures made new lows Tuesday, falling below the previous lows of late January. Class IV futures have been declining due to the weakness of butter last week and the weakness of nonfat dry milk this week. Lower milk prices may be a reality for a longer period than had been anticipated. Lower milk output and a slower demand period keep supply and demand balanced. Buyers of dairy products have little to be concerned about at present. Spring flush will be evident soon and will keep the market supplied with milk. Greater concern over supply will develop if increased culling continues over the next few months.
CHEESE:
It was anticipated lower cheese prices would increase buying interest. That has not been the case as cheese is readily available for demand. Buyers have shown little interest in purchasing ahead to build inventory.
BUTTER:
The strength of butter over the past two days has been more than offset by the weakness of nonfat dry milk. Nonfat has fallen back to the lowest level since Feb. 16. Price has been trading in a sideways range since October and shows no signs of breaking out of that range.
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