OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Steady to 2 Lower |
MILK:
It is possible we are seeing the beginning of a larger retracement in milk futures. It has been an incredible run higher. Milk supply is sufficient for demand. Overall milk production in the country is steady. Culling seems to have slowed now that milk prices look more promising and farms have reached a balance with feed and cow numbers. The addition of cows is not likely to any great extent as costs continue to increase for many goods and services. Cost of production has risen, making it less likely cows will be aggressively purchased to fill empty stalls. Cow numbers and milk production may be in a holding pattern.
CHEESE:
There is some concern further weakness in cheese might be evident Monday. Buyers may have stepped away from the market for the time being as they have sufficient ownership of supply for first quarter expected demand. However, world price is higher and exports are strong. This may limit downside price potential.
BUTTER:
Butter is in demand and there is little anticipation price is going to decline anytime soon. Bulk butter supply is tight. Churning activity is increasing but it will take some time to rebuild inventory while at the same time satisfying strong domestic and international demand. Butter futures carry a significant discount to cash, which is very unusual.
.jpg)
