Monday Morning Dairy Market Update - Traders Begin Week With Caution

OPENING CALLS:

Class III Milk Futures:	3 to 5 Lower
Class IV Milk Futures:	Mixed
Butter Futures:	Mixed

OUTSIDE MARKET OPENING CALLS:

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

MILK:

Milk futures have not been following the underlying cash prices higher. There is anticipation that cash prices may have limited upside potential, and traders are not buying into the recent strength. It is difficult to know at what point traders might turn bullish. The current fundamentals do not suggest the trend will continue higher. Traders have another week of uncertainty to look forward to in the world markets due to the ever-changing tariff news. Milk production will improve as the spring flush continues.

CHEESE:

Cheese prices have been trending higher, but continued strength is not likely. There is sufficient supply for demand and cheese production is increasing due to higher milk receipts at plants. Cheese inventory is increasing, but remains below a year ago.

BUTTER:

The butter price is expected to remain rangebound in the near term as buyers and sellers are comfortable at the current price. The butter demand for Easter has been filled with retail assessing movement before restocking. Demand from food service is lighter than expected for this time of year.