Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
Outside Market Opening Calls:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Steady to $2 Lower |
| Wheat Futures: | 4 to 7 Lower |
Milk:
Class III futures slipped Wednesday as a result of steady cheese prices. Traders were a bit disappointed cheese was not able to move higher. However, selling was not aggressive as steady cheese prices do show support with price declines being limited. Milk production is improving seasonally and may increase steadily due to mild weather improving cow comfort. There has been some discussions and predictions of an early spring with fieldwork potentially beginning earlier than usual. Weather as such would increase milk production to spring flush levels earlier, allowing for more milk to be processed to meet increased demand. However, we all know that weather can change quickly, and there can be some adverse weather into the month of April before it can be said that winter is truly over. Milk futures are expected to trade mixed with light volume prior to spot trading.
Cheese:
Cheese has been able to hold gains but has not been screaming higher. The gains have been more calculated. Buyers intend to gain ownership of product without much fanfare. Sellers are willing to sell but have not been aggressive. This has allowed prices to hold and slowly increase. Increased demand from government purchasing for food programs has been able to support prices. The announcement of USDA to extend waivers to provide meals to children through the summer rather than just during the school year should keep demand stronger from that area.
Butter:
Price is on the verge of breaking above the previous high of last week and may do it Thursday. Price needs to move 0.75 cent to move above that level. Buyers of butter have been aggressive as food service and export demand is improving. Butter inventory is large and readily available, but only butter produced after Dec. 1 can be traded on the CME spot market.
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