OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 15 to 17 Lower |
MILK:
Milk futures have taken a beating so far this week, with the May Class III contract falling $0.83 and the June contract falling $0.71. Class IV futures continued their decline, but with less loss than Class III contracts. The continued weaknes of Class IV was understandable due to the weakness of butter. However, the strength of nonfat dry milk on Tuesday should have garnered buying interest from traders, but it failed to do so. The weakness of Class III futures was a head-scratcher as the underlying cash prices held mostly steady. The weakness seemed to be fueled by a negative perception. The decline in the trade-weighted average in the Global Dairy Trade auction on Tuesday is the first after six consecutive events posting gains and is a cause for concern.
CHEESE:
Cheese prices might have limited upside potential due to increased cheese production as the spring flush unfolds. It will be up to demand to keep up with production and limit the increase in inventory.
BUTTER:
Butter has not been able to find solid support. Price increases in the spot market have been short-lived. Manufacturers are moving supplies without hesitation to keep inventory from building at the plant level. There is no concern about the availability of supply in the near term.
