OPENING CALLS:
| Class III Milk Futures: | 5 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 6 to 8 Higher |
MILK:
It may be difficult for Class III milk futures to regain the recent losses and to trend higher. The upside price potential may be limited due to the spring flush, increasing the available milk supply. The March Milk Production report will be released on Wednesday and is expected to show higher milk output than a year ago. The percent of gain will not be as much due to the strong year-over-year gains last year. However, the gain should be significant. This trend is expected to continue this year as cow numbers increase. The Class IV price is a different story as nonfat dry milk continues to increase due to tight supplies.
CHEESE:
Cheese prices are potentially establishing a sideways pattern for the time being. The fundamentals are not supportive enough to regain the losses and develop an uptrend. Cheese production is increasing as milk receipts are higher at the plant level. Demand is good, keeping inventory slightly below a year ago, but it is not good enough to turn buyers aggressive.
BUTTER:
The butter price is unable to find support. Recent price strength has been met with further weakness as the price falls below the previous low. Manufacturers continue to move supplies to the market even though inventory is below that of a year ago. Buyers continue to purchase butter, but they are holding back and purchasing at lower prices.
