OPENING CALLS:
| Class III Milk Futures: | 4 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | 20 to 30 Lower |
| Soybean Meal Futures: | $8 to $10 Lower |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Milk futures put in a strong week last week and may now be ready to hold for a bit, waiting to see how underlying cash will perform. The increase of spot cheese prices Friday does provide support to futures. Milk production is termed as steady to improving overall. It is unclear whether culling in January continued to remain aggressive. It is thought to have slowed, as milk futures indicate stronger prices for the year. USDA's estimates for higher prices this year added to the bullishness of the market last week. Now that the Super Bowl is behind us, it will be up to regular demand to determine price direction. With the concerns and the impact that might be seen due to high fertilizer prices this year on feed prices, another concern has also developed over the weekend. The announcement from Bayer of a force majeure event that may significantly hinder Bayer's ability to supply its customers with glyphosate or glyphosate-containing products this crop year. A mechanical failure at a manufacturing plant providing a key raw material may cause production to drop for about three months. This could have a significant impact on yields and grain prices.
CHEESE:
Cheese prices did not show much of an increase last week with blocks up 0.75 cent and barrels up 1.50 cents. Yet milk futures moved substantially higher. There is some indication cheese demand has slowed slightly domestically as high prices are having an impact and football season is now behind us. However, demand remains strong overall and could support prices, resulting in prices remaining in a sideways range for a period of time.
BUTTER:
Price made a strong rebound last week as buyers stepped back into the market. There are some reports attention is already being turned to procuring supply for the second quarter of the year as buyers look ahead and adjust for delivery delays. This may push price higher as plants are looking ahead to Easter demand and buyers are looking ahead to second quarter demand.
