OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | 4 to 5 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 4 to 6 Higher |
MILK:
There was some trading excitement in the overnight market with both Class III and IV contracts traded. The overnight volume was strong in Class III futures, with the May contract gaining as much as $0.38 and June up $0.37. The May contract had a volume of 220 traded overnight. However, the current bids and offers are below those prices, potentially indicating that the excitement ran its course. The March Cold Storage report should not have triggered the buying interest overnight, as the report was neutral. Milk output remains strong, providing sufficient supply for bottling and manufacturing.
CHEESE:
Cheese inventory in March was below that of March 2025, but supplies are sufficient for demand. Buyers in the spot market have not been very aggressive, as strong milk production will keep cheese production strong. The block cheese price is nearing the top end of the range and may find buyer resistance at that level.
BUTTER:
Traders are expected to exhibit caution in the butter market. The pattern has been that a bounce in price has been short-lived, and the aftermath has been lower prices. It would seem feasible that the current butter price would generate strong buying interest, but sufficient supplies keep buyers unconcerned over supply.
