OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
The increase in March milk production of 0.9% was a surprise and bearish to the market. It may not push milk prices much lower, but it may limit the upside potential for the foreseeable future. It seems the higher milk production has already been factored into the market. Cow numbers continue to increase as cows are being held rather than culled due to high replacement prices. Lower-producing cows will pay for themselves due to lower feed prices and are already paid for. The heifer supply is tight, and prices are high. More cows are increasing the milk supply above a year ago. However, it is impressive that production per cow has also improved.
CHEESE:
The higher milk production will keep the market supplied with milk. Cheese production has been increasing as milk receipts continue to rise at the plant level. The cold storage report on Thursday is expected to show an increase in inventory, but supplies should remain below a year ago.
BUTTER:
The butter price is expected to remain choppy as churning remains active and Easter demand is over. Buyers have been able to purchase supplies for later demand without being aggressive. Sellers continue to bring butter to the spot market to keep inventory from building at the plant level.
