OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 4 to 8 Lower |
| Soybean Meal Futures: | $4 to $5 Lower |
| Wheat Futures: | 3 to 4 Lower |
MILK:
Traders may be cautious ahead of spot trading. There is a possibility buyers of cheese may not be as aggressive at these levels. Milk production is improving seasonally but is running below a year ago. Bird flu is having an impact on production in some areas and is likely going to continue to affect milk output to some extent. Consumer demand will be the key to price strength moving through the first half of the year. Currently, there is a sufficient supply of milk for demand. The weather forecast is for extremely cold weather to move across much of the country which may impact production and transportation of milk. However, this may not impact the market very much overall.
CHEESE:
Cheese prices have maintained the recent price increases indicating the market is supported. Buyers have been aggressive as prices increased, but may now have reached a level where buyers and sellers are comfortable for the time being. Reduced milk volumes will be available for manufacturing with schools back in session.
BUTTER:
The downside of the butter price is expected to be limited, but further weakness is possible. Holiday demand is finished, and first quarter demand is being assessed. Buyers may remain active at lower prices as they would rather pay storage rather than chase the market higher as the year progresses.
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