OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 1 to 2 Lower |
MILK:
There has been no indication the adverse weather has had a significant impact on milk or dairy product movement. There have been delays but no reports of lost milk at this point. The recent strength of milk futures has been in direct correlation to the strength of underlying cash and not any fundamental change in the market. Traders will be cautious about buying futures very aggressively due to the potential for underlying cash prices to continue to chop around. Sufficient milk remains available to the market leaving end users with little concern over supply.
CHEESE:
If the pattern of the past few months remains intact, cheese prices could drop back today. When immediate buying interest is fulfilled, buyers will be less aggressive resulting in sellers becoming more aggressive. Manufacturers want to limit inventory build and are not interested in holding product and paying for storage.
BUTTER:
Price is expected to be choppy with little direction in the near term. If it follows the pattern of last year, price may establish a range where it could remain for much of the first half of the year. Strong output will keep the market supplied and buyers complacent.
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