OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 3 to 4 Higher |
MILK:
Class III milk futures benefited from strong underlying cash prices. The concern is whether cheese and butter prices will maintain price gains during the spring flush. Currently, there is sufficient supply for demand and that may continue for another month or two before milk production slows and willing buyers of cheese will continue to purchase and support the market as they look ahead to a seasonal period of better demand during the second half of the year. Higher underlying cash prices would result in higher milk prices becoming a reality.
CHEESE:
Cheese prices may have found a bottom, but the market will continue to remain choppy. It seems a bit more of the bearishness has been reduced with traders more willing to purchase based on price movement and not on perception. The market will need to prove itself before a solid trend develops.
BUTTER:
The butter supply is sufficient for demand with the price remaining choppy but supported. Churning is active due to the plentiful cream supply. The extra supply of butter over and above current demand has increased the inventory above a year ago, but the industry is not concerned about oversupply at present. It is comfortable with extra supply.
