OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Milk futures have found support as underlying cash has been increasing overall. There remains uncertainty whether that can continue under the current fundamentals. Cheese and butter demand is steady and running below a year ago. However, demand is expected to improve as the year progresses. It is difficult to say whether that demand will improve sufficiently to tighten supplies and increase prices. The milk production report for March will be released on Tuesday, indicating whether cow numbers continue to increase or if lower milk prices have impacted culling. Milk futures show low milk prices may be with us through the year. This may result in increased culling and a tighter milk supply over time.
CHEESE:
Block cheese has been in greater demand as the price has increased steadily over the past two weeks. Traders remain cautious about whether that can continue much longer. The barrel cheese price has shown weakness but remains strong relative to blocks.
BUTTER:
The butter price is not expected to trend one way or the other, but to remain in a sideways pattern in the near term. The current price is similar to where it was in 2023 at this time. That year, once the price began trending higher in June, it moved to a record high by October. That is not expected to happen this year to that magnitude, but the price should trend higher.
