OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Nearby Class III milk futures closed at the highest level since early November with prices increasing dramatically in a little more than two weeks. Class IV futures continue to make new contract highs across the board. The perception of traders has changed, and support may remain unless proven otherwise. That does not mean prices will continue to increase with some price retracements or periods of stability. It does mean prices may not fall back to the lows. The one thing to bear in mind is any market that moves dramatically higher or lower over a short period generally moves in the opposite direction faster than it moved initially. Market participants will keep that in mind and any price weakness of the underlying cash could trigger heavy selling. Milk production is holding well with sufficient supply available to the industry. Overnight trade was minimal and confined to the March Class III contract with price down cents. Traders may take a wait-and-see attitude.
CHEESE:
Cheese prices may not continue to trend higher and may find a level at which they move in a sideways range. Even though sufficient cheese is available for demand, the Super Bowl is an event that sees significant cheese consumption. More aggressive buying may be tied to this seasonal event just because prices usually increase.
BUTTER:
Butter seems to be searching for a catalyst to move prices higher. Price does seem to have found support and may move into a sideways pattern. The key will be if exports improve this year. That could provide substantial support to the market.
