Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
Outside Market Opening Calls:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Mixed |
Milk:
There was light trade in Class III futures overnight. This is a bit unusual after a day of contracts closing very strong with some limit up. There is generally some follow-through buying in the overnight, but that was not the case. Traders might have decided that the large move Thursday based on only a 2.25-cent increase of blocks might have been a bit extreme. However, futures held overnight as traders may wait and see whether the price strength Thursday was warranted. Cold weather is having an impact on milk production and product movement. The disruption of product movement is more in line with delays rather than lost product. However, the supply and demand balance is not that tight that it would have a substantial impact on the overall market. Traders will remain friendly to the market and will buy on any news that could support price increases. They remember the impact government purchasing had on the industry last year.
Cheese:
Even though block cheese price increased Thursday, it remains below the level the market traded in for about a month during late November through the end of December. Barrel trading has been active with price remaining steady. Manufacturers have no shortage of milk. Spot milk is readily available at a low price if plants have room for it.
Butter:
Buyers have become more aggressive, but not to the extent that they are leap frogging over each other to obtain supply. That will not happen as inventory is large and continuing to grow. Buyers want to take advantage of a reasonable price now rather than purchase at a higher price later. Further strength is expected.
.jpg)
