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: | $1 to $2 Higher |
| Wheat Futures: | 1 to 2 Lower |
MILK:
Milk futures seem to have no direction. Underlying cash continues to chop around leaving traders guessing on price direction. The longer underlying cash prices continue to chop around, nearby Class III futures erode. Class IV futures are faring better as butter price is higher and price has not seen quite the choppiness as cheese has. There will be another large difference between the January Class III and Class IV prices as much of the pricing has now been factored in. Much of the price movement will take place when the weekly AMS prices are released, and traders adjust price expectations based on those numbers. Milk production has stabilized during this past week as the weather has eliminated further gains. The pickup of milk and the delivery of dairy products is back on track for the most part.
CHEESE:
There is concern over the supply of cheese which leaves buyers less aggressive on the spot market. Cheese inventory is reported to be holding steady. This has been the goal of manufacturers and why they have remained aggressive on the spot market. They want to limit inventory build with storage and interest costs where they currently are.
BUTTER:
Butter manufacturers have turned their attention to production for Easter and spring needs. Much of the needs for the first quarter are contracted and in place to be shipped. Plentiful cream supplies will keep production strong. Some cream is being frozen for later use due to the excess volume.
