OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 2 to 5 Lower |
| Soybean Meal Futures: | $3 to $ Lower |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Class IV milk futures have been clearly outperforming Class III futures after a period of time during which both classes moved together with Class III higher than Class IV in some contracts. However, the strength of butter and nonfat dry milk compared to cheese and dry whey changed that. Historically, milk prices would increase February to March and then settle back as spring flush takes place. That has not necessarily been the pattern over the past few years as other influences changed that significantly. Last year, record milk prices were seen in April and May right into spring flush as there was fear over a tight milk market. It is possible this year may see more of a usual pattern. However, traders will be more reactive to both fundamentals and influences from outside markets.
CHEESE:
Prices have been chopping around over the past two weeks void of any catalyst to push the market one way or the other. Supply and demand seem to be balanced with buyers and sellers comfortable. It does appear buyers may be stepping up to purchase to rebuild aging programs and increase ownership earlier at these lower prices.
BUTTER:
Price is increasing without much fanfare. Buyers are active but not concerned over supply. Active churning with plentiful cream supply is meeting demand as well as building inventory. It makes sense for buyers to purchase ahead and at current prices.
