Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
Outside Market Opening Calls:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 6 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 5 to 8 Lower |
Milk:
Milk futures may be moving in a consolidation pattern for a period of time. Futures have tried to spike higher a few times only to be tempered by a mixed underlying cash. The trade is cautious due to the recent price increase and the level of milk production that is taking place. Supply is readily available for demand with increasing milk production keeping pace with the increase of demand. This may limit price potential in the near-term. Milk production continue to run higher than the previous year and will continue to do so as futures show good milk prices as the year progresses. There has not been much talk of plant quotas other than a few plants that have implemented them previously. It is a bit too early, but it may surface once milk production increases during spring. The December Class III futures finally joined the rest of the contracts, reaching $18.00.
Cheese:
Cheese price seem to be wanting to consolidate and move into a sideways pattern. However, there is increasing demand for fresh cheese from the restaurant industry and continued purchasing for government food programs. The strength of the market will be determined on whether sufficient cheese will be manufactured to keep up with demand.
Butter:
Price is poised to break above the current level and move back to the highest it has been since July. It has been a nice rally and one that will have a greater difficulty moving higher as more fresh butter is now available and there is a plentiful supply in cold storage. However, price should remain supported.
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