OPENING CALLS:
| Class III Milk Futures: | 10 to 15 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 6 to 8 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | Mixed |
MILK:
Overnight trading showed surprising strength with futures 6 to 27 cents higher. Trade volume was unusually high with April posting over 100 contracts trading. Some large traders may be liquidating some short positions to take profits and create greater volatility to provide an opportunity for reestablishing positions. Interestingly, several contracts traded in the December. It is unusual to see overnight volume in later futures contracts. There has been no overnight change in fundamentals to trigger buying interest. It will be interesting to see what takes place during spot trading Wednesday.
CHEESE:
Cheese is searching for a bottom but has not been able to find one. Price should be nearing a level at which buyers might be interested in purchasing to increase ownership for later demand. But the current inventory is sufficient for demand with buyers cautious over purchasing too aggressively as they are uncertain of demand. Fresh cheese demand remains lackluster.
BUTTER:
The best that can be said about butter is it is holding in a sideways price range. Demand is generally stronger during the Easter season, which could provide further price support under the market over the next two weeks. However, a fair amount of butter may have already been purchased ahead of time which may limit upside price potential.
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