OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 20 to 25 Higher |
| Soybean Futures: | 20 to 45 Higher |
| Soybean Meal Futures: | $5 to $8 Higher |
| Wheat Futures: | 45 to 60 Higher |
MILK:
Overnight trading activity only took place in the March contract with price unchanged from Friday. Wide bids and offers were placed with no interest in changing those. Traders are uncertain of what to do based on the underlying spot price action on Friday. The market is trying to anticipate milk prices with optimism stemming from the recent milk production report and a correlation between milk and higher corn prices with the level of demand. Income over feed will only be a part of determining profitability. Other goods such as fuel, labor, parts, etc. are all escalating in price as well and may continue to do that with the current world situation. Price movement will be uncertain in dairy futures until some direction is seen in underlying cash. USDA will release the January Agricultural Prices report Friday afternoon, providing average prices for the month used in calculating income over feed for the Dairy Margin Coverage program.
CHEESE:
The significant weakness of cheese on Friday was a surprise after it was anticipated they would increase as a result of the milk production report showing a contracting milk supply. That may have a greater influence as the year progresses, but buyers may have sufficient product on hand for the time being leaving them less aggressive.
BUTTER:
The price decline on Friday was a surprise as buyers were expected to be aggressive in their quest to increase ownership of butter for later demand. However, inventory increasing in January indicates sufficient supply for demand and then some. Buyers have already been purchasing for second quarter demand moving them much further ahead than previous years.
