OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 2 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Class III futures found support after spot cheese prices increased. Traders will be cautiously optimistic Wednesday as further strength might be seen in the spot market. However, even with further gains, the upside may be limited for the time being. The tariffs with Mexico and Canado have been put on hold, but things can change quickly, and traders will remain cautious. Milk production is steady keeping sufficient milk available for bottling and manufacturing. This may limit the aggressiveness of buyers as demand continue to run below a year ago. The USDA will release the January Federal Order Class Prices Wednesday.
CHEESE:
The strength in spot cheese on Tuesday does not indicate a change in trend. It does indicate prices were low enough for buyers to purchase some supply even though the market is not tight. The upside price potential is expected to be limited as international demand uncertainty will continue.
BUTTER:
The price held on Tuesday but that may not indicate support has been found. The sellers may not have needed to move any butter with hopes that buyers would turn more aggressive. That was not the case with buyers comfortable with supplies. Strong butter production may keep the upside price potential limited for the near term.
