OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 1 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 7 to 10 Higher |
MILK:
Class III milk futures rebounded nicely this week despite the volatility in the stock market. Dairy exports may remain strong despite the uncertainty over tariffs. The tariffs seem to be concentrated on China, which is not a large importer of most dairy products. They are a large importer of whey, and demand may be impacted. Time will tell if this continues or if some concessions will be made. Milk production is increasing as warmer weather improves cow comfort. USDA raised its estimate for milk production by 700 million pounds this year, according to the World Agricultural Supply and Demand (WASDE) report released on Thursday. April 10. The expectation is for cow numbers to remain higher than a year ago and potentially increase.
CHEESE:
Spot cheese prices have been increasing. The block price has increased for five consecutive days, with barrels up the past four days. Another day of strength may cause traders to become excited about the potential for the market to trend higher. Demand will need to improve to keep inventory from building.
BUTTER:
The decline in the average estimated price of butter for this year, according to the WASDE report, does not bode well for upside price potential. Churns remain active and inventory is growing. Buyers are buying at low prices and storing for later demand. This will reduce buying aggressiveness later this year.
