OPENING CALLS:
| Class III Milk Futures: | 2 to 6 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 5 to 7 Higher |
MILK:
The April Class III contact is moving near the $17.00 level. Support must be found soon, or the price could fall below that level. The weakness of the underlying cash is not providing support to the market. It is not that milk production is strong and over abundant, but the combination of current milk production and slower demand puts pressure on the market. Buyers of dairy products are buying as needed and are not concerned about supply. The uncertainty of tariffs provides little incentive for buyers to purchase ahead as they do not know the level of demand later in the year. Traders will be cautious ahead of spot trading, but may not be aggressive buyers if spot prices increase as gains have been short-lived.
CHEESE:
Cheese prices have yet to find support. Cheese output has been steady with supply readily available to the market. There have been reports of demand improving, but it will need to improve significantly to support the prices. Sellers want to move cheese to the market to keep inventory from building.
BUTTER:
The butter price may have limited upside potential as the cream supply remains heavy. Sufficient butter is available for demand with buyers not having to chase the price. The price may see further weakness as sellers continue to move supply rather than store it
