OPENING CALLS:
| Class III Milk Futures: | 10 to 15 Higher |
| Class IV Milk Futures: | 2 to 6 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 7 Lower |
| Soybean Futures: | 7 to 9 Lower |
| Soybean Meal Futures: | 1 to 2 Lower |
| Wheat Futures: | 5 to 6 Lower |
MILK:
Milk futures closed mixed on Tuesday, but the overnight trading activity indicates traders may be more aggressive buyers Wednesday. The increase in butter and cheese price on Tuesday may see further gains Wednesday as the sellers may hold back to see if buyers will be more aggressive. However, gains may be limited ahead of spot trading as traders wait for the market to prove itself. The market may have factored in the potential impact on demand that tariffs could have. It is uncertain whether dairy products would be listed on items of retaliatory exports. The turmoil in the equity markets over the past few days is cause for concern and talk of a recession will keep caution in the market. Milk production continues to improve seasonally as spring flush nears.
CHEESE:
Cheese prices are low and may attract buying interest. However, buyers may not be very anxious to purchase aggressively as they remain uncertain over demand. There are indications that demand is improving, but overall demand remains below a year ago. Spot cheese prices are expected to increase Wednesday.
BUTTER:
The butter price is expected to remain choppy. The abundant supply of butterfat keeps churning active and butter readily available to the market. Plants will continue to move butter to the spot market to limit inventory levels.
