OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | 10 to 15 Higher |
| Butter Futures: | 1 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 7 to 9 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 8 to 11 Lower |
MILK:
It appears the strong week for milk futures last week may carry over to Monday. Overnight futures were higher for both classes with good activity in the February and March Class III contracts. Traders still will maintain some caution as fundamentals have not changed and the underlying cash prices may have limited upside potential. Any weakness in spot prices could trigger aggressive selling. The weather continues to look favorable for cow comfort in much of the country. Milk production should be maintained and may increase slowly with strong components. Both the December Agricultural Prices and the Biannual Cattle Inventory reports will be released Wednesday.
CHEESE:
Buyers have been more aggressive in their spot cheese purchases as they realize prices may be near the lows and they would like to gain more ownership of supply. However, they do not want to increase inventory too much as increased storage rates may not be made up with higher cash prices if milk production remains at current levels and cheese production remains strong.
BUTTER:
All eyes will be on the spot butter trade Monday. The sharp price increase last week was a surprise and may result in further strength as those who have remained complacent may step into the market more aggressively.
