OPENING CALLS:
| Class III Milk Futures: | 8 to 12 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 2 to 3 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 6 to 8 Lower |
MILK:
Milk futures pushed higher overnight with double-digit gains in the February, March, and May Class III contracts. March moved above $17.00 overnight to a level it has not been at since Dec. 14, 2023. Underlying cash has seen strong buying interest, which has taken place since the Milk Production and Cold Storage reports. The Milk Production report was not friendly to the market, showing limited milk production and cow number declines. The Cold Storage report was neutral for cheese and bullish for butter. The Cold Storage report has been the focus of the market. Tuesday is the last day to trade January futures and options. The January Federal Order class prices will be announced on Wednesday.
CHEESE:
The block cheese price is back to the highest level it has been since Dec. 7, 2023, with barrels back to the highest since Dec. 11, 2023. The market has had these sharp price increases in the past, only to fall back after the immediate buying interest has been satisfied. Fundamentals have not changed much over the past few weeks.
BUTTER:
Buyers seem to be leapfrogging over each other in their attempt to purchase supply. Cash trading activity has not been very heavy as sellers have been holding back. The strength in butter seems to be leading the other cash markets higher. Hopefully, there is not a price void developing under the market.
