Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
Outside Market Opening Calls:
| Corn Futures: | Mixed |
| Soybean Futures: | 5 to 8 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 1 to 3 Lower |
Milk:
Milk futures were strong last week, but similar gains may be difficult to achieve this week. The market may have run ahead of itself with the anticipation of continued strong buying of cheese. Many traders anticipate higher prices due to what was seen last year as buying for the Food Box programs pushed futures substantially higher. The market is in a different posture with production and supply than it was last year. This may result in gains not being quite as much, but higher prices may still be possible as buying for the food boxes continues. Fundamentally, this is the time of year during which demand generally slows. It is difficult to determine whether a seasonal slowing of demand will partially offset government purchases. Futures are indicating some nice prices for February through April.
Cheese:
It is anticipated spot cheese prices will increase Monday with blocks likely outpacing barrels again. The aggressiveness of buying slowed on Friday, which could indicate buyers may limit their aggressiveness as sellers seem more willing to move product at these levels. Manufacturing is strong as milk receipts continue to slowly improve making more cheese available to the market.
Butter:
Price closed the week at the lowest level since Nov. 30. The Food Box program has not had much positive impact on the market. Supplies continue to grow as churning remains active. Further price weakness is expected, but it will be choppy.
