OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | 2 to 6 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 2 to 4 Lower |
MILK:
The increase in milk futures may have run its course for the time being. It seems underlying cash is not supportive of stronger prices at present. Traders are anxious to find support due to the extended period of low milk prices. However, the market is not ready to trend higher. There are some longer-term positive fundamentals, but the time of year is not right to find solid support. Some have been trading the price swings in the hope of making a profit. This heightens the movement of futures. The milk production and cold storage reports have been digested with a focus on daily spot prices. The February Slaughter report did not indicate culling is increasing as much as anticipated.
CHEESE:
Cheese prices may remain choppy as supply and demand seem to be balanced for now. Some manufacturing plants are running at or near capacity as spring flush progresses. Some plants are short of milk due to farms being lost or milk production decreasing. Spot milk prices remain reasonable and generally below class, allowing plants that need more milk to find some for purchase at reasonable prices. Buyers of cheese do not show concern over supply at present.
BUTTER:
Butter supply in cold storage was a little more than expected, which may have caused buyers to be less aggressive in the spot market on Tuesday. However, the current supply is not burdensome with much of the price movement of cash being regular business being done. Price may remain in a range for a time.
