OPENING CALLS:
| Class III Milk Futures: | 4 to 6 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 3 to 4 Higher |
MILK:
Milk futures closed higher on Monday as the market drifted without direction from spot trading. Trading volume was very light as traders did not see much opportunity for scalping the market for a short-term trade. The market fundamentals are rather benign, with limited influence from the outside markets. The weather is conducive for milk production growth, and higher cow numbers will keep the market supplied with milk. In a few weeks, educational institutions will be closing for the summer, with most closing in a month. This will have more milk available for manufacturing and should reduce the cream supply. Today is the last trading day for April futures and options, with the Federal Order Class Prices announced on Wednesday.
CHEESE:
Buyers and sellers did not show up to do business in the spot market on Monday. Supplies are balanced as buyers see no need to become aggressive. Increasing cheese production will keep supplies readily available and limit the upside price potential.
BUTTER:
The price may retest the low and would be considered a buying opportunity. Limited upside potential is expected in the near term. Exports are expected to be robust as the U.S. price is very attractive to international buyers.
