OPENING CALLS:
| Class III Milk Futures: | 5 to 9 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 1 to 3 Higher |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 3 to 5 Higher |
MILK:
Milk futures diverged Tuesday with Class III lower and Class IV higher. It is not likely this will be repeated Wednesday to the extent it was Tuesday. Underlying cash will determine the price direction, maybe. Overall trader sentiment may result in futures not following cash as seen Tuesday in Class III futures. Overnight trading in Class III futures showed substantial volume with May trading nearly 250 contracts and April more than 100 contracts. USDA will release the March Federal Order prices today with the trade anticipating a Class III price of $16.33 and a Class IV price of $20.09. The state of Nebraska has issued a restriction on the importation of dairy cattle for 30 days due to the HPAI virus found in dairy cattle. A special permit will be required during this time. This will be in place for 30 days at which time the restriction will be re-evaluated. This may begin a ripple effect in other states.
CHEESE:
Cheese is seeing some buying interest at the lower prices on the spot market, but that may be short-lived unless milk supply tightens, or demand improves. Neither of those is seen to be the foundation of any longer-term impact at present. Cheese futures are carrying a significant premium to cash in anticipation of price strength.
BUTTER:
Butter price pushing to new highs Tuesday may open the way for further gains as some buyers that may have been holding back could step up to the plate to increase ownership ahead of potential further price increases. If exports begin to improve further support will be seen.
