OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 3 to 5 Lower |
MILK:
There is not much to be said about the milk market as the fundamentals remain the same. It seems continued strong milk production is fully impacting the market. The weakness of the past week has been substantial and has eliminated a lot of value. The milk supply will need to tighten due to an increase in demand before milk futures may find support. We have seen counter-seasonal movement since last fall, but will we see it through the spring flush season? The current market fundamentals do not suggest this will be the case. The movement of milk futures over the past week dims the outlook for prices for the year.
CHEESE:
Cheese prices are expected to remain in a range. Cheese production has increased due to high milk receipts. This will continue as milk production is expected to exceed last year throughout the rest of the year. It is uncertain whether demand will hold due to higher prices for all food and other goods, as consumers have less buying power.
BUTTER:
Butter demand is good, but not good enough to tighten the supply. Strong butter production due to the abundance of cream and milk is keeping the market well supplied. International demand has been strong and is expected to remain strong, but that is not enough to tighten the supply. The market has yet to find support.
