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: | 5 to 7 Higher |
| Soybean Meal Futures: | $0.50 to $1 Higher |
| Wheat Futures: | 1 to 2 Lower |
MILK:
There is hope that milk futures will rebound similarly to what they did the last time they were at these levels. However, they will not rebound on their own and will need support from the underlying cash market. Milk production is not slowing and may be exceeding demand at the present time. Inventory has been decreasing seasonally, but that has not increased buying interest. There are no concerns over supply tightness. Cow numbers continue to increase as farms expand. The revenue from calf sales is good and is making up for lower milk prices. Grain prices have been increasing, but that may not impact milk production in the near term.
CHEESE:
Cheese prices have been in a range over the past two months and may remain that way as the spring flush continues. Cheese plants have sufficient milk to keep them running on full schedules. Cheese is moving into the market to keep inventory from building. Buyers have been able to purchase for immediate as well as later demand.
BUTTER:
The weakness of butter last week does not indicate the market has found support. In fact, the continued desire of manufacturers to move butter to the market as quickly as possible and at lower prices indicates an overabundance of supply. Abundant cream supplies and increased milk production keep the churns operating seven days a week.
