OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 11 to 14 Lower |
| Soybean Meal Futures: | $4 to $5 Lower |
| Wheat Futures: | 5 to 7 Lower |
MILK:
Milk futures may have a difficult time rebounding with underlying cash prices being volatile. There is sufficient milk available for bottling and manufacturing, keeping the concern over a supply tightness limited for now. Despite cold weather, milk production is reported to be improving seasonally. Demand has been steady for most dairy products. There is some anticipation that milk production will continue to run lower than a year ago. The USDA reduced their expectation for milk production for the year, but total output will still remain higher than a year ago.
CHEESE:
The recent volatile pattern of the block cheese price may continue as buyers want to purchase at lower prices and sellers want to move cheese at higher prices. The light trading activity may enhance the price movements. Demand for most cheese is steady, while the demand for barrel cheese is lighter than usual for this time of year.
BUTTER:
The weakness of the butter price is expected to be limited, but it will not develop a steady trend higher. The price is expected to trend higher but will not be without setbacks. The price trend may be similar to last year, but it may take longer to develop due to the current strong churning pace. The price is expected to remain choppy.
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