OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | Steady to 2 Higher |
MILK:
Trading activity is expected to be limited ahead of cash trade as the market has already adjusted to Friday's activity. There is also some uncertainty about the January Milk Production report that will be released Wednesday. Generally, the report is not a market mover, but it will be watched more closely and may influence the market more than usual. The change in cow numbers is likely the aspect of the report that will be watched the most. Milk production is holding well in much of the country with many areas reporting component values are running ahead of last year.
CHEESE:
The inverted block/barrel spread is not likely to continue for an extended period, but the weakness of blocks carries more weight as that is what is traded on the daily spot market. Cheese output remains strong with cheese demand slower than a few weeks ago. This may keep upside potential limited.
BUTTER:
Butter prices have had good support and may see further support as the Easter season approaches. Overall demand is good at the retail level. Food service demand is termed as steady. Churning is active with some plants trying to build inventory, which is being frozen for later demand. Cream supply remains plentiful.
