OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 8 to 12 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 2 to 4 Lower |
MILK:
There is quite a bit of bullishness in milk futures as demand for dairy products remains strong even after holiday orders are filled. Increasing prices at this time of year is unusual, but not unheard of. Milk production has been declining due to high feed prices and increasing cost of goods and services. Cost of production continues to increase. This is squeezing profitability with farms cutting where they can which is affecting overall milk production. Weather has been good for cow comfort aiding in keeping milk production per cow strong as cows are not dealing with weather stress. More milk continues to move to manufacturing as schools are closed. This may have little impact on supply and demand for cheese and butter as increased supply of milk to manufacturing is temporary.
CHEESE:
Cheese prices are increasing with blocks likely to reach back to the previous high of $1.9475 set two weeks ago. Buyers are anxious over supply, which is keeping them buying to protect against further price increases. Sellers will continue to hold back as long as buyers remain aggressive.
BUTTER:
Demand is strong both domestically and internationally. Price continues to increase as buyers turn more aggressive to outbid each other to increase ownership for next year. Butter price on the last Global Dairy Trade auction was $2.65 compared to Monday's price of $2.3050. This makes it attractive for the international buyer keeping exports strong. Butter has the advantage of being purchased now and then frozen for later use without changing the consistency.
