OPENING CALLS:
| Class III Milk Futures: | Steady to 4 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 5 to 9 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Milk futures fell last week with April and May Class III contracts possibly revisiting the lows of Jan. 25. There is hope buyers of physical cheese and butter will step up at these lower prices. This would provide support for milk futures and trigger buying interest from traders. With milk production holding steady and the potential for spring flush to begin early, buyers of cheese and butter do not have concerns over supply at present. Demand is slower for cheese at this time of year. Butter should see demand improve over the next few weeks as the Easter season nears. USDA will release the January Dairy Products report Monday afternoon, which will show the level of production for dairy products for the month.
CHEESE:
Barrel cheese prices have not declined very much with blocks showing more pressure and lower prices. Blocks may be nearing a level at which buyers may step up to the plate to purchase and build inventory. Buyers and not concerned over supply at present but may take steps to increase ownership to some extent and take advantage of price weakness.
BUTTER:
The decline in butter price has been surprising but may be short-lived. Buyers may step up more aggressively as demand should improve over the next few weeks. However, churning has been active, keeping sufficient supply available to the market. The Dairy Products report Monday will show the level of production during January. This can be compared to the Cold Storage report to provide an idea of the level of demand.
