OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 15 to 20 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $6 to $8 Higher |
| Wheat Futures: | 50 to 75 Higher |
MILK:
Milk futures moved significantly higher Thursday, supported by gains in the spot market. This moved Class III April through July contracts above $23.00 and April through June Class IV contracts to $25.00 and above. Class IV price have never been this high. It is unclear how milk production was in February or whether cow numbers have continued to decline. Reports are that milk production has been increasing from the lower levels it had been with the January milk production report showing production per cow 29 pound higher than December. However, production per cow was down 15 pounds from a year earlier. Cow numbers have continued to decline according to the report. Yet, most bottling and manufacturing plants report that there is sufficient milk for production. Feed prices continue to escalate and could get worse under current world events. USDA will release the January Dairy Products report Friday.
CHEESE:
The increase of cheese prices Thursday moved blocks to the highest level they had been since Nov. 12, 2020. Barrels moved to the highest level since the same date as blocks. It was not that long ago since cheese prices made record highs, which took place in October 2020. It is difficult to determine whether this will be repeated this year. The difference is that we have significant inflation and the conflict in Ukraine is having substantial impact on commodity and financial markets.
BUTTER:
Butter price has quite a way to go to move back to where it had been three weeks ago and in late January. However, buying interest may increase if milk supplies tighten. There is sufficient cream available at the present time which has many plants running near capacity. Bulk butter supply is tight, but inventory is slowly building.
