OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 2 to 3 Lower |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 5 to 7 Lower |
MILK:
Class III milk futures held well despite the turmoil in the other commodity markets. Contracts closed higher, supported by the higher block cheese price. It is unlikely futures will run to the upside significantly, as the market will balance supply and demand. The increase in milk production will require demand to improve, or an oversupply could result as we move through the spring flush. With the outlook for better milk prices, farmers will increase milk production to take advantage of higher prices. USDA will release the World Agricultural Supply and Demand report Tuesday. It will contain estimates for domestic and international grain production and stocks. It will also contain estimates for milk production, milk prices, and dairy product prices for this year. This is not a market mover for dairy, but it will provide the outlook and potential for dairy this year.
CHEESE:
The block cheese price has held well, providing support for a better potential for milk prices. Cheese demand has been good, but it will need to increase to keep up with the expected higher milk output over the next few months. Bottling demand is steady and the increase in milk production will move to manufacturing. USDA is expected to raise the cheese price in the report Tuesday.
BUTTER:
Butter is holding above $2.00. This may be the support level for now as buyers remain active, but not aggressive. Butter supplies are sufficient for demand. The USDA is expected to raise the price outlook in the World Agricultural Supply and Demand report Tuesday.
