OPENING CALLS:
| Class III Milk Futures: | 4 to 6 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 3 Higher |
MILK:
Class III milk futures posted strong gains, supported by the reversal and strength in the equity and commodity markets. The announcement of a 90-day reprieve in tariffs on countries that have not established retaliatory tariffs should keep dairy products moving to international markets. International demand needs to remain strong, and domestic demand needs to improve for milk prices to increase. Increasing milk production will result in more supply for the market. This will add more inventory of dairy products unless demand rises. USDA will release the World Agricultural Supply and Demand report Thursday. The report shows USDA's estimates for milk production, milk prices and dairy product prices for the year.
CHEESE:
Cheese prices have increased for three consecutive days. The pattern has been that buying interest dries up and prices slip back. This will be the focus of traders ahead of cash and may limit the upside price potential. The increase in milk receipts at plants will increase production. Demand will need to improve to keep inventory from building.
BUTTER:
The butter price is not expected to change in the near term. Most of the demand for Easter supply has been shipped, leaving regular demand to keep the supply moving. Butter has been put into inventory for later use as production exceeds demand.
