OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 1 to 3 Higher |
MILK:
The weakness of milk futures on Monday may have been indicative of what could take place this week. Futures adjusted to the underlying cash, with minor strength in block cheese and nonfat dry milk having no influence on price support. Milk production is improving seasonally as the spring flush gears up. This is not expected to overwhelm the market, but will keep sufficient milk available for demand. The potential for higher milk prices as the year progresses will keep farmers pushing milk production to take advantage of the higher prices. The demand for beef-on-dairy calves continues to increase, adding a sufficient income to the bottom line of the operations. Tuesday is the last day to trade March dairy futures and options.
CHEESE:
The block cheese price has decreased to the uptrend line and will need to regain the recent loss, or the price could move into a sideways pattern. The latter is likely as cheese production increases due to increasing milk receipts at the plant level.
BUTTER:
The butter price may continue to chop sideways with buyers and sellers content to take care of business at the current level. Easter demand has been filled and regular demand will need to increase to renew an uptrend in the price. Manufacturers continue to offer supplies to the spot market, satisfying buyer demand.
