OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 4 to 5 Higher |
MILK:
Milk production remained strong in March, running 2.3% above March 2025. Cow numbers increased by 8,000 head, which will keep a significant volume of milk available to the market moving through the spring flush. This direction will continue as the year progresses. Expansions continue to take place as the income from milk and the high price for calves have put many farms in a good financial position. Obviously, it would be nice to see higher milk prices, but the current level of supply and demand has not put the market in a bullish posture. Strong milk output is being absorbed by domestic and international demand, but the current level of demand and production may limit the upside price potential.
CHEESE:
Cheese prices are expected to remain in a range as production is sufficient for demand. The March Cold Storage report will be released on Friday, indicating the amount of increase in inventory. Seasonally, inventory will increase, but the level of increase will indicate demand.
BUTTER:
Sellers continue to offer butter on the spot market. They are moving butter at whatever price they can to limit the buildup of inventory at the plant level. Buyers remain active, but not aggressive. There is no concern over a tightening supply at present. International demand remains strong due to the U.S. price being substantially below the world price.
