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: | 2 to 3 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 3 Lower |
MILK:
The current milk production is steady to higher with milk production increasing seasonally. It will be interesting to see the level of milk production and production per cow during December. The December Milk Production report will be released next week on Friday, Jan. 24. Manufacturing and bottling plants have sufficient supplies for demand. The winter weather so far has not had much impact on milk production. However, supplies of spot milk have tightened with prices of $1.00 to $1.50 over class. This is not causing concern over any possibility of a shortage, but it does provide support to the market. The FSA will begin the next enrollment period for the Dairy Margin Coverage program on Jan. 29 and will run through March 31.
CHEESE:
Cheese prices could go either way in keeping with the volatility over the past week. Some traders are stepping back waiting for the market to settle down. It is always difficult to predict a market direction, but the current market environment makes it impossible.
BUTTER:
The recent weakness of butter has been a surprise. The lower price was expected to increase buying interest, but that level has not been found. Business is being done on the spot market with buyers holding for lower prices. Retail demand is steady to stronger while food service demand is somewhat lackluster. Churning remains very active.
