OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 5 to 7 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 2 to 4 Higher |
MILK:
The April milk contracts should begin to flat-line now through the end of the month. May Class III futures look more promising as they currently hold about $1.75 higher price than April. Class IV futures have little price difference between the nearby month and the May contract. Class IV futures continue to retain a substantial premium over Class III futures. Current futures prices indicate this will continue through the rest of the year. Steady cheese prices on Wednesday may keep trading mixed until the spot market provides direction.
CHEESE:
Cheese prices have made nice gains over the past three days with blocks reaching back up to the level they were on February 28. Buyers may be more interested in purchasing and storing for later demand. There seems to be a slightly growing concern over milk supply due to continued low milk prices and a tightening heifer replacement supply.
BUTTER:
Strong churning activity is keeping the price from pushing above the $3.00 level for the time being. Food serving demand is slightly lower than anticipated with high food prices reducing restaurant traffic a bit. However, overall demand is good and is keeping the price supported. Price is expected to remain choppy in the near term.
