Opening Calls:
| Class III Milk Futures: | Steady to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
Outside Market Opening Calls:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 5 to 9 Lower |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 3 to 6 Lower |
Milk:
It is doubtful the strength of last week will carry over through this week. However, it seems the anticipation is for higher milk prices through the year despite increasing milk production and the potential for inventory to build further. There is some premium that is being retained in the market due to the potential for higher feed prices. The idea is that higher feed prices will result in lower milk production. The other side of that is if feed prices increase and milk prices increase at a similar pace, there will be no slowing of milk production. Milk per cow has been increasing significantly and is expected to remain that way. The next impact that could affect milk production is hot weather, and that is a few months away. The markets may trade slowly and cautiously prior to spot trading Monday.
Cheese:
Barrel cheese made an impressive increase Friday. This be viewed as an opportunity to sell product. But sellers may hold back due to the chance that buyers will still need supply and will continue to bid higher to get it. Barrel price effectively broke out of the sideway trading range it has been in since early November.
Butter:
There is no doubt that strong price is a reality and not just an effort to increase price. Exports are very strong and food service demand has increased more quickly than had been anticipated earlier this year. Buyers are purchasing not just for immediate demand, but for expected upcoming demand. There is solid support under the market.
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