OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 5 Higher |
MILK:
Class III futures were slightly lower overnight on limited trading volume. Traders are cautious over the market's potential to move much higher in the near term. The increase in milk production is expected to continue over the next few months due to the spring flush and may remain higher the rest of the year. There should be sufficient milk available for increased demand, leaving little reason for buyers of dairy products to be concerned about supplies. The price spread between Class III and Class IV futures continues to widen as Grade A nonfat dry milk continues to set a new record price almost daily.
CHEESE:
Cheese prices may be carving out a sideways trading pattern. It is still too early to tell, but increasing milk receipts at the plant level and higher cheese output will be sufficient to meet any increase in demand. But even steady cheese prices at the current level will be better than anticipated at the beginning of the year.
BUTTER:
The butter price has been holding, which is providing some support to the market. The hope is strong domestic and international demand will absorb the extra production and keep inventories below a year ago. Ice cream production has increased, utilizing more of the available cream supply.
