OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 5 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $0.50 to $1 Lower |
| Wheat Futures: | 7 to 9 Lower |
MILK:
The March Milk Production report was not supportive of higher milk prices anytime soon. Increasing milk production and milk per cow will keep a plentiful supply of milk available for demand. The spring flush will continue over the next month, with processing plants receiving increasing milk supplies. The underlying cash prices may remain choppy as buyers and sellers take care of business without fanfare. Planting is progressing, and the expectation is for plentiful feed supplies if average weather is experienced. Historically, milk prices follow the corn price, and the projected increase in corn acres may limit the upside potential of corn prices.
CHEESE:
Cheese prices may have difficulty increasing as cheese output increases and demand remains steady. The recent gains in cheese prices were surprising and welcomed, but short-lived, as has been the pattern. Demand is expected to improve this summer, but the increase may not tighten the supply.
BUTTER:
Retail butter demand is improving, but food service demand is less than anticipated. Buyers have been able to purchase supplies without difficulty, which has limited the upside price potential. However, March butter stocks were only 4% above a year ago, even though churning has been active. December butter stocks were 11% above a year ago. This may eventually provide further support to the price.
