OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | 5 to 15 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 9 to 11 Lower |
| Soybean Futures: | 9 to 13 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 17 to 20 Lower |
MILK:
Milk futures may continue their strength today as traders may turn more optimistic over price potential. Of course, strength over one or two days does not indicate a change in trend. Underlying cash prices may have limited upside potential, but higher prices may unfold for a time. Some strength might be from traders reacting to the substantial decline in crude oil overnight as President Trump is pausing Project Freedom, allowing Iran to come to an agreement with the U.S. This may not have much of a fundamental impact in the near term, but traders may buy into the market with the hope of taking a quick profit.
CHEESE:
Cheese prices have not provided any indication of support, but sideways price action is expected for now. Increased milk receipts keep vats full and plants running on full schedules. This leaves sufficient cheese available to the market.
BUTTER:
Butter futures traded overnight in the July and August contracts, with prices slightly higher. The strength of the butter price on Tuesday is being viewed with caution. The pattern has been that an increase in the price has been followed by further weakness. Traders will remain cautious unless proven otherwise. The March Dairy Products report will be released Wednesday afternoon and is expected to show increased production from a year ago.
