OPENING CALLS:
| Class III Milk Futures: | 4 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 8 to 10 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | Steady to 2 Lower |
MILK:
Class III milk futures might take back what was lost yesterday. Steady cheese and dry whey spot prices Tuesday did not support the weakness of futures. Those losses might be reversed Wednesday as the market chops around. However, all that may change if spot trading moves one way or the other as milk futures seem to be in line with underlying prices. More milk will be available for manufacturing this weekend as schools will be closed for at least one day. That is not expected to have any impact on current prices or demand. There are some disruptions taking place in those areas which are being impacted by the winter storm through milk pickups and deliveries. Increased demand was seen as people prepared for the storm and retailers will need to restock shelves. It is not expected to have much impact on milk output in those areas with other areas of the country showing steady improvement in production.
CHEESE:
Cheese prices rarely remain stable for more than two days for both categories, so I expect one of the other or both to move Wednesday. However, buyers may not want to bid any higher and sellers do not want to sell any lower potentially keeping prices stable.
BUTTER:
Buyers and sellers are comfortable at the current level taking care of business when they need to. Supplies are being purchased ahead on price dips as buyers continue to increase ownership for second half demand. Butter continues to be produced for the export market due to strong international demand.
