OPENING CALLS:
| Class III Milk Futures: | 3 to 8 Lower |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 6 to 10 Higher |
MILK:
The past two weeks have seen an exceptional jump in Class III milk futures. The May contract closed above $18.00 and is at the highest level since Nov. 16, 2023. This certainly has changed the outlook for milk prices and has improved the mood of dairy producers. The March Milk Production report showed milk production down 1.0%, which was right where it was expected. This should not cause any reaction in the market. Traders are reacting to the underlying cash which is the strongest it has been in quite some time. Milk production continues to improve as the weather is conducive to cow comfort. Fluid milk demand is steady with cheese and butter demand good. Milk futures may take a little breather Tuesday after the recent strong gains.
CHEESE:
There is some concern over the strength of cheese Tuesday. There were unfilled bids under both blocks and barrels Monday with those bids 9 to 11 cents below the close. This may indicate Monday's strength may have been from the need to fill immediate orders and not due to any shortage of supply or the desire to purchase ahead for later demand. Spot trading could be interesting Tuesday if no other buyers step up to the plate and sellers want to move product.
BUTTER:
The strength of butter on Monday was likely due to continued good demand. Churning has been active, but demand has been strong enough to keep inventory from building very much. USDA will release the March Cold Storage report Wednesday, which may show continued strong demand limiting inventory growth.
