Opening Calls:
| Class III Milk Futures: | 4 to 10 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | Steady to 1 Lower |
Outside Market Opening Calls:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | Mixed |
Milk:
USDA announced that the increase of financials for the Supplemental Nutrition Assistance Program (SNAP) of 15% will be extended through September. The current duration of the extra funding of 15% over and above what is normally appropriated was enacted by Congress in December and was to run through June. President Biden has extended it through September. They have also increased administrative support to increase the efficiency of providing the food assistance to those in need. The disappointment is that nothing was indicated as far as extending the Farmers to Families Food Box program. This still could be done, but the indications are that this will be the current administrations focus and not another Food Box program. This may be some of the reason for some price pressure overnight. However, overall demand is good, and the current Food Box program runs through April.
Cheese:
There is interest in purchasing blocks, which has kept price slowly increasing this week. The initial price decline Wednesday during spot trading before regaining and closing higher, did increase the concern of traders. It could indicate buyers and sellers may be comfortable doing business at current levels. This may keep the market choppy. USDA will release the January Dairy Products report Thursday afternoon.
Butter:
The decline of butter price Wednesday does not indicate that the rally is over. Strong butter price on the Global Dairy Trade auction should keep export sales strong. Restaurant demand has also been increasing. The concern is whether price has increased too far, too fast. Supply remains readily available and production is strong. Traders might be cautious Thursday until there is further direction from cash.
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