OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 6 to 8 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 1 to 3 Higher |
MILK:
May is the lead contract month. The May contract is nearly half-priced and will decline in volatility over the next two weeks. The April Federal Order Class Prices will be announced today. The trade anticipates a Class III price of $17.45 and a Class IV price of $17.96. These prices certainly are nothing to get excited about. The current futures do not look much different through the rest of the year. Sufficient milk supply and current demand do not indicate higher milk prices anytime soon. Farm expansions are taking place even though heifer supplies are tight, and prices are extremely high. There are no signs of milk production slowing down as farmers try to increase production to make up for lower prices. USDA will release the March Agricultural Prices report today, providing prices for income over feed for the Dairy Margin Coverage program.
CHEESE:
Cheese prices are expected to continue to chop around, showing little direction. Cheese production is increasing, keeping the market sufficiently supplied with product. Cheese buyers have no concern over supply, leaving them unaggressive in the market.
BUTTER:
The price falling to a multi-year low does not bode well for higher prices anytime soon. However, the stage may be set up for higher prices later in the year if the market follows a similar pattern to 2023. Cream supplies should decrease over the next few months as schools close and warmer weather impacts the butterfat content in the milk.
