OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 5 to 9 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | Steady to 2 Higher |
MILK:
Milk futures have yet to find some support but the movement of underlying spot prices so far this week has made it difficult for traders to get excited about buying futures aggressively. Milk production is lower than a year ago, which has provided some support, but slower demand is keeping supply and demand balanced. The tightening supply of heifers has become a hot topic recently as prices for heifers and cattle, in general, have been increasing. This may limit milk production growth over time. USDA will release the January Agricultural Prices report Thursday afternoon.
CHEESE:
Spot cheese prices have been supported but have not been able to show continued strength. The fact that prices are supported is positive in the larger picture. However, the weakness of dry whey has put pressure on the market. Dry whey price has declined 8.25 cents so far this week, which has moved it down to the lowest level since Jan. 23.
BUTTER:
The butter price may find a level at which buyers will step back in more aggressively. This would move the price back up again. The significant increase in inventory in January still left stocks 6% below a year ago. Churning is active and retail demand will improve over the next few weeks.
