OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 10 to 14 Lower |
| Soybean Meal Futures: | $7 to $10 Lower |
| Wheat Futures: | 7 to 10 Higher |
MILK:
Traders continue to carry the idea that higher prices will continue as the year progresses. They feel any price weakness will be viewed as a buying opportunity. Milk production is anticipated to continue to contract as farms cull cows despite the potential for higher milk prices. Farmers want to try to get more milk out of less cows. They are trying to find a balance between holding onto cows and anticipate high milk prices to remain or to reduce cow numbers and increase production per cow to hopefully reduce cost of production. If feed costs and the cost of goods and services begin to stabilize and milk prices hold or continue higher, cow numbers may stabilize and begin to increase. The Global Dairy Trade auction will take place Tuesday providing an idea of the strength of world dairy prices.
CHEESE:
Traders may be cautious prior to spot cheese trading. The weakness of blocks last week and the strength of barrels is not expected to continue. The question will be whether buyers will step up and take advantage of the lower block price or if sellers will be more aggressive with the higher barrel price.
BUTTER:
The recent weakness of butter has been more than anticipated and traders are not sure whether it has run its course. It is unlikely demand has slowed. It is likely buyers may have sufficient on hand for the first quarter and possible longer-term needs. After all, they have been aggressive buyers for quite some time. Price movement will be uncertain this week.
