OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 15 to 20 Higher |
| Soybean Futures: | 25 to 35 Higher |
| Soybean Meal Futures: | $5 to $8 Higher |
| Wheat Futures: | 60 to 85 Higher |
MILK:
Milk futures moved significantly higher last week with overnight trading indicating further gains Monday unless underlying cash dictates otherwise. The movement higher of underlying cash is somewhat calculated rather than being a runaway market. However, the optimism held by traders keeps any decline limited and short lived. Continued escalating feed and fuel prices is having a substantial impact on cost of production. Milk supply remains sufficient for demand but there is fear that supply will tighten as the year progresses and inflation continues. So far, milk price has been able to keep up with feed prices, but other costs continue to rise as well.
CHEESE:
Block cheese prices moved to the highest level it had been since Nov. 11, 2020. Barrels are at the highest prices since the same date. Cheese prices have a long way to go to reach back to the record highs of 2020. Strong support to Class III futures stems from the high dry whey price. Any weakness of dry whey is expected to be limited and short lived.
BUTTER:
Price seems to be struggling somewhat as it bounces around. The aggressive buying late last year and early this year ran its course as buyers were looking to increase ownership of supply. Cream is available keeping churning active.
