OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Higher |
| Class IV Milk Futures: | 5 to 1h Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | 1-2 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 5 to 6 Lower |
MILK:
Traders supported milk futures overnight with nearby Class III contracts posting double-digit gains. This was a bit surprising due to the release of the February Milk Production report on Friday, which is considered bearish to the market. Milk production was 2.9% higher than a year earlier, with cow numbers up 15,000 head from the previous month. The maket focus might be on the record temperatures being experienced in the western half of the country and how it could impact overall milk output. Crude oil futures fell dramatically early Monday morning as some positive news came out of the discussions with Iran. President Trump delayed military strikes on power plants and energy infrastructure in Iran. However, dairy markets have been little impacted by the movement of crude oil, and this is likely to be the same.
CHEESE:
There is uncertainty as to the strength of cheese prices moving forward. Blocks have had a nice rally, but may see buyer resistance at this level. There is sufficient cheese available in the market, and inventories are building seasonally.
BUTTER:
It seems that butter is finding support at the current level. It may not turn the market to trend higher anytime soon, as manufacturers are maintaining a strong production level and selling butter to limit building inventory at the plant level.
