OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 5 to 6 Lower |
MILK:
The recent strength of cheese and dry whey prices has many wondering if the market has turned to trend higher. It certainly seems that way as the price strength has lasted longer than it had been for several months when price increases were short-lived. The strength during last week moved nearby Class III futures to the highest level since early December. Class IV futures made new contract highs across the board with only the March and April contracts slightly below $20.00. The October and November contracts are slightly below $21.00. Traders will be cautious ahead of cash. The inability of cash cheese prices to hold the highs on Friday may leave trading activity limited ahead of cash activity. USDA will release the December Dairy Products report this afternoon showing the production of various dairy products for the month. It is not a report that will influence the market very much, if at all.
CHEESE:
Cheese has been showing some strength but may have reached a threshold for the time being. The cheese supply is sufficient for demand with some reporting and an increase in demand for some varieties of cheese. Some of this is likely tied to the Super Bowl as it is a huge festivity with increased cheese consumption. This cheese has already been shipped and factored into the market. The Dairy Products report today will show the level of cheese production during December.
BUTTER:
Butter has found greater support, but the price is not moving higher by leaps and bounds. The recent weakness is likely a temporary retracement. Manufacturers have been preparing for Easter as it is a time of high butter demand.
