OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 4 to 6 Lower |
MILK:
Much of last week was not good for milk futures as the underlying cash market turned a bit more negative. This was not unexpected as there was very little reason for the recent strength of underlying cash to be maintained. Some of the buying that took place in underlying cash was likely the result of the NFL Playoffs and the Super Bowl. That is behind us now and it is up to regular demand to carry the baton. Milk production is lower than a year ago but is being maintained, leaving sufficient supply for demand. This leaves limited concern for bottlers and manufacturers over supply. Weather remains good for cow comfort and feed intake, keeping milk production at a strong level seasonally.
CHEESE:
Prices have moved to a higher level but may remain in a sideways range. The are some reports that cheddar cheese demand has slowed a bit, which is somewhat seasonal. Demand is generally slower at this time of year. It is positive that milk production is a little less than last year or milk prices might be even lower than they currently are.
BUTTER:
Butter price could see more of a setback, but the decline is likely limited. Demand seems to be holding well. Manufacturers are looking ahead to demand during the Easter season and are churning accordingly. International demand continues to struggle.
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