Monday Morning Dairy Market Update - Milk Futures Remain Choppy

OPENING CALLS:

Class III Milk Futures:	3 to 8 Lower
Class IV Milk Futures:	2 to 4 Lower
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Mixed
Soybean Futures:	3 to 5 Higher
Soybean Meal Futures:	$2 to $3 Higher
Wheat Futures:	Mixed

MILK:

There is little anticipation for milk futures to move higher anytime soon. The underlying cash prices are expected to be mixed with no change in that trend in the foreseeable future. The underlying cash prices are expected to remain choppy as buyers and sellers take care of business without fanfare. Milk production is improving, increasing the amount of milk that manufacturing plants receive. It may be difficult for demand to utilize the increased milk production under the current market environment. Demand may remain lower than usual depending on the impact of tariffs on the equity markets and whether there could be a recession. Monday, March 31, is the final day to sign up for the Dairy Margin Coverage program this year. USDA will release the February Agricultural Prices report this afternoon. They will also release the Quarterly Grain Stocks and Prospective Plantings report this morning.

CHEESE:

Cheese prices are expected to remain choppy as buyers see no need to be aggressive and sellers want to move supply to limit inventory build at the plant level. There is sufficient supply for demand.

BUTTER:

There is quite a bit of butter available for demand. Inventory is building seasonally and running above last year. Churning remains active as plants are utilizing abundant cream supplies. Retail demand is improving as the Easter season approaches.