OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 2 to 3 Lower |
MILK:
Overnight trade is following the pattern of the past few days with nearby Class III contracts showing further strength. Nearby contracts have made impressive gains recently with February futures up around $0.80 and March around $0.60. There may not be much more potential as buyers of cash cheese might limit their aggressiveness to current levels. Increased cheese export demand in November certainly was positive, which may have carried over to strong exports in December as well. Milk production remains generally steady, providing sufficient milk to both bottling and manufacturing. Another winter storm will disrupt handling, distribution, and processing, but most of the disruption will be delays and not loss of milk or product.
CHEESE:
Block cheese price has increased 17 cents since the low on Dec. 26. This is the largest steady price increase we have seen since the large increase in the summer of 2023. It is possible the increase may not continue for very long, but it is improving the price outlook to an extent. The market might reach buyer resistance soon.
BUTTER:
Price may develop a holding pattern with a sideways range developing. Inventory is increasing, which may limit upside. Poor exports in November and year-to-date exports running 49.8% below the same period in 2022 do not bode well for upside price potential. Domestic demand has been good but not good enough to keep inventory from being higher than a year ago.
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