OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Milk production has been impacted by the cold weather and wet weather depending on the location in the country. It has not only impacted milk production but the movement of milk off the farm as well as dairy products to the stores. This is not expected to have a large impact on the overall fundamentals, but it may have a short-term impact either from reduced production or reduced demand. This will move back to where it had been prior to the adverse weather once it runs its course. The increase of grain production and ending stocks on the World Agricultural Supply and Demand report on Friday may mean milk production will remain strong as there generally is a correlation between the price of corn and the price of milk. Lower corn prices generally mean lower milk prices.
CHEESE:
Block cheese price has been holding while barrels have shown weakness. Traders remain cautious over how much more price potential remains. Buyers may reach a threshold as there is little concern over the availability of supply. Prices are expected to remain choppy.
BUTTER:
Price may move similarly to a year ago when price remained in a sideways range for most of the first half of the year. Price may dip lower at some point as butter production is strong with plentiful cream supply. Some plants have turned cream away due to their inability to process more.
