OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 6 Lower |
MILK:
Even though most underlying cash categories during spot trading yesterday showed gains, traders did not buy into Class III futures aggressively. Class IV futures were higher in some contracts as prices were settled higher. Improving milk output keeps supply available for both bottling and manufacturing. Lower milk production than a year ago has not had a positive impact on the market as buyers of the physical product have not been concerned about supply. Demand has not been exceptional either, which is usual at this time of year. The market does not seem to be concerned over the discovery of a human contracting the avian flu that had contact with infected dairy cattle. Today is the last trading day for March milk and dairy product futures and options contracts.
CHEESE:
The bump in cheese prices yesterday during spot trading did not get much attention from traders. The price increases may be short-lived as they have been numerous times over the past months. The market will need to prove itself before prices trend higher and buyers will be more aggressive.
BUTTER:
Butter is in a better posture than cheese as supply and demand are balanced with buyers supporting the market. Buyers are comfortable building inventory for later demand. Cream is available and churning is active with extra butter being frozen and in storage. This may limit upside price potential later with should continue to support the market now.
