OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
The activity in spot cheese trading on Wednesday was mixed, but traders focused on the weakness of barrel cheese rather than the strength of block cheese. They had been anticipating weakness, and once it took place, they were quick to sell. Overnight trading activity was light with prices mixed. There is little outside news for traders to focus on. The activity during spot trading will provide some volatility, but not a long-term price direction. Traders expect a further retracement of cash prices, keeping them somewhat bearish. Thursday is the last trading day for the week, with the markets closed on Good Friday.
CHEESE:
Cheese prices have had a nice run higher, but may have difficulty seeing further upside potential unless cash prices hold and increase. Cheese production is increasing as more milk finds its way to manufacturing. This provides sufficient supply for demand, with some moving to inventory.
BUTTER:
Butter production remains strong as plants utilize the available cream supply. Some cream loads are expected to back up over the Easter weekend as production schedules will be reduced. This will not overwhelm the market as churns have been active and keeping up with supply. However, inventory remains above a year ago and continues to increase.
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