OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 6 to 8 Higher |
MILK:
Some signs in the market could indicate higher milk prices may materialize at some point. It is difficult to predict at what point that will be or how long it will take. Milk futures already have gains factored in with a seasonal peak in October as futures indicate. Demand will need to improve to turn buyers more aggressive in the cash market. Exports in February showed improvement and hopefully will continue to increase over the previous year. There is sufficient supply for demand at present, which may keep prices rangebound for the time being.
CHEESE:
Cheese prices may remain choppy as spring flush continues and leaves sufficient milk available for manufacturing with spot milk prices continuing to show a discount to class. Buyers have not yet been concerned over supply and are purchasing for immediate orders with some purchases for aging programs. The slight weakness of barrels Tuesday may cause buyers to step back Wednesday, waiting to see if sellers will remain aggressive.
BUTTER:
Price seems poised to increase with any price decreases being short-lived. Butter exports in February continued to remain below a year ago, but strong consumer demand is taking up the slack. If exports begin to improve, the butter price could move significantly higher as the year progresses.
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