Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
Outside Market Opening Calls:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 5 to 9 Lower |
| Soybean Meal Futures: | $1 to $3 Lower |
| Wheat Futures: | 1 to 4 Lower |
Milk:
With plentiful milk supplies and increasing milk production, there is little reason to anticipate as a surge in milk prices anytime soon. There still remains some optimism the supplies of fresh cheese will tighten due to purchases for the Farmers to Families Food Box program. Traders will be quick to step into futures aggressively if more aggressive buying surfaces in the daily spot market. Tuesday is the final trading day for January futures and options with the Federal Order class prices to be announced Wednesday. The Global Dairy Trade auction will be held Tuesday providing information on the strength or weakness of the world market.
Cheese:
The bounce of block cheese price Monday will be viewed as just that -- a bounce. There is little to indicate a tightening market that may cause buyers to become more aggressive. Supplies are plentiful in the country reducing the need for buyers to come to the daily spot market. Manufacturing plants are running at or near capacity earlier than usual, which may prompt some plants to implement temporary quotas for a few months beginning as early as next month.
Butter:
There is little bullish news out there for the butter complex. Sellers have become more aggressive as they want to move butter supply as quickly as possible. Buyers have ready access to supply leaving little need to bid up for product. The weakness of price seems to indicate they may reach back to the low set in late April 2020 before it is all said and done.
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