OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 3 to 6 Higher |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 3 to 5 Higher |
MILK:
Class III milk futures held up well, considering the substantial decline of cheese prices. Traders had not aggressively supported the market as underlying prices increased, leaving fewer positions to liquidate on weakness. The Cold Storage report was neutral and should not have much impact on the market Friday. Dairy cattle slaughter was slightly higher than February but lower than a year ago, keeping the trend of increasing cow numbers intact. Increasing cow numbers and higher production per cow will continue to result in milk production exceeding the previous year. That will not overwhelm processing capacity but will increase the availability of dairy products to the market.
CHEESE:
Cheese inventory did not increase as much as anticipated in March, keeping stocks below a year ago. However, slightly lower demand is limiting the price potential. Manufacturers continue to offer cheese to the spot market to keep plant inventories from building. Spot prices may see further weakness Friday as buyers hold back.
BUTTER:
The increase in butter inventory in March was less than expected, with a gain of 18.1 million pounds. This put the butter supply 4% above a year ago. The abundant cream supply and active churning were expected to result in a larger increase. However, the supply of butter is not expected to tighten anytime soon. The price is expected to remain rangebound for the near term.
