OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Higher |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 4 to 5 Higher |
MILK:
Milk futures show little reason to trend higher as there are sufficient supplies of milk and dairy products to meet demand. Mik production is increasing seasonally as the spring flush has begun. Processing plant capacity is not expected to be overwhelmed, but spot milk prices showed further weakness with prices posted as much as $4.50 below class. Increasing milk production may not push prices lower, however, it may limit the upside price potential for the time being. The Global Dairy Trade Auction will take place Tuesday. The Farm Service Agency (FSA) will release the average soybean meal price for February, providing the final price for calculating the income over feed for the Dairy Margin Coverage program.
CHEESE:
Cheese prices are expected to chop around in the near term as manufacturing plants want to move supply to limit the build of inventory at the plant level. Buyers see no need to be aggressive as sufficient supply is expected to remain available. Demand is showing signs of improving, but supply is readily available.
BUTTER:
Cream supplies remain abundant with churns running on full schedules. Reports are that it is not as difficult to find a home for cream as it had been. Butter fat levels may decrease slightly as milk production increases through the spring flush. The butter price is expected to have limited upside potential.
