OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | MIxed |
| Soybean Futures: | 6 to 9 Higher |
| Soybean Meal Futures: | $0.50 to $1 Lower |
| Wheat Futures: | Mixed |
MILK:
It was an interesting overnight market for Class III futures. Both the March and April contracts were active, with March showing 185 trades and April showing 237 trades at the time of this writing. This level of activity is rarely seen during overnight trade. Something triggered aggressive buying as the current bids are significantly below the last trades. Someone paid the price when buying the April contract with a market order, as it rose as much as 63 cents at one point. The current offer is 31 cents higher than Friday's close. The opposite was seen in the March contract as the price fell as much as 91 cents this morning, as again an inexperienced trader entered market orders. It is surprising to see the heavy trading activity in the March contract as Tuesday is the last trading day with the March Federal Order prices announced on Wednesday. USDA will release the February Agricultural Prices report Monday, providing most of the prices used in calculating income over feed for the Dairy Margin Coverage program.
CHEESE:
Cheese prices may see further weakness as buyers might have reached a threshold. Cheese output is strong as milk receipts increase at the plant level, and spot milk is available at a discount.
BUTTER:
Butter futures showed trading overnight, which is unusual, but may become more common as increased volatility has dominated the market. Price swings have been substantial as traders react to underlying cash. Butter orders for the Easter season have been met with business being done as usual.
