OPENING CALLS:
| Class III Milk Futures: | 2 to 4 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 4 Higher |
MILK:
Milk futures closed lower Tuesday despite steady- to higher-cash prices. The minor gains were a disappointment to traders, resulting in selling pressure. Later-year futures contracts have maintained the uptrend despite the weakness on Tuesday. Milk production is increasing, but the market has absorbed it, keeping the outlook for milk prices better than had been anticipated earlier in the year. The April Federal Order class prices will be released Wednesday afternoon. The April Class III contract closed at $16.85 and the Class IV contract closed at $20.20. Futures and options will be settled according to the announced prices.
CHEESE:
Cheese prices remained unchanged Tuesday. This was disappointing to traders, resulting in increased selling pressure. The block cheese price is near the recent highs and may find price resistance near that level. Cheese supplies are sufficient for demand, limiting the need for buyers to be aggressive.
BUTTER:
Traders will remain cautious in the butter market. Price increases have been short-lived, keeping the market in a downtrend. This will change at some point, but so far there is no indication of price support. Even with the lower price, buyers have not had to be aggressive, as sellers have been willing to offer supplies to the spot market at lower prices to keep inventory from building at the plant level.
