OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 8 Higher |
| Soybean Futures: | 15 to 20 Higher |
| Soybean Meal Futures: | $5 to $7 Higher |
| Wheat Futures: | 6 to 9 Higher |
MILK:
Class III milk futures showed strong gains overnight, likely in anticipation of higher spot prices. The strength may trigger short-covering as the day progresses with traders exiting sold positions. To see this strength overnight and before spot trading is unusual as traders generally prefer to wait until direction is seen from spot prices. However, there are more analysts and articles citing a similarity to 2014 and higher prices. This has increased the buying interest of traders after the significant price correction of the second half of January. Class III futures have nearly regained the losses and are knocking on the door of new contracts highs again. Class IV futures have been holding at contract highs.
CHEESE:
Block cheese has regained about half of the price loss suffered in the second half of January with barrels regaining about three-fourths of the loss. Buyers have again turned more aggressive as they look ahead and purchase for second quarter demand. Super Bowl demand has been met with ongoing regular demand, the driver of the market.
BUTTER:
Butter is in a tighter supply position with inventory significantly lower than a year ago. Churning is increasing as cream supply is becoming more available. Nonfat dry milk price remains strong which is providing substantial support to Class IV prices.
