Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | 1 to 2` Higher |
Outside Market Opening Calls:
| Corn Futures: | 3 to 6 Higher |
| Soybean Futures: | 10 to 15 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 10 to 15 Higher |
Milk:
Milk movement will be hampered this week by the extreme weather that is being experienced across a large area of the country. This will cause delays, but likely not much in the way of lost milk. Milk output is being affected to some extent in those areas being affected. This may be a good thing, which will keep milk production from becoming burdensome. However, it is expected to be temporary with the growth curve of milk production to resume after the extreme weather passes. Class III milk futures have rebounded from the lows from nearly two weeks ago, but a continued trend higher may be difficult to achieve. Milk futures may be establishing a sideways range.
Cheese:
The weakness of cheese on Friday is expected to continue Tuesday as buyers are unlikely to be aggressive. There is sufficient supply to meet current demand as well as to rebuild inventory. With spot milk prices running substantially below the usual for this time of year, there is plenty available to keep manufacturing plants full and cheese production strong. Increased purchasing through government programs should keep product moving.
Butter:
Butter is a bit of a wild card as supply is heavy, but buyers have been more aggressive on the spot market. It is doubtful sellers are holding back in anticipation of higher prices in the foreseeable future due to heavy production. The market seems to be trying to find a level of balance between supply and demand with some increase in demand seen from the food service industry.
