OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 7 Higher |
| Soybean Futures: | 10 to 12 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Milk futures showed further strength overnight as the attitude of traders has turned less bearish. Prices are not expected to continue to rise but may reach a threshold. However, prices have increased further than anticipated for this time of year. Even though Class III futures have increased, prices remain significantly below the levels at the beginning of the year. Class IV futures have been struggling with the May and June contracts around $1.00 below Class III. The increase in prices on the Global Dairy Trade auction on Tuesday indicates international demand may remain strong, with exports above a year ago.
CHEESE:
Cheese production in March was higher than a year ago, but inventory has not increased substantially and remains below a year ago. This indicates that overall demand remains strong. More milk is moving to manufacturing due to increasing milk receipts. This should keep the market supplied with cheese, limiting the upside price potential.
BUTTER:
Traders are waiting to see whether the price will break above the sideways trading range. Buyers have been able to purchase supplies without difficulty and have not had to chase the market higher. There have been sufficient supplies available to meet demand and build inventory. This may limit upside potential.
