OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Steady to 1 Lower |
MILK:
The beginning of a new year will not change the market fundamentals. Strong milk production is evident and is expected to remain that way for some time. Production per cow may fluctuate due to the impact of weather, but even that may be limited as farmers have made great strides in providing cow comfort. The impact of bird flu has been minimized, as those herds that have had it have built up immunity, and better levels of biosecurity have been implemented. There are some indications demand is improving, but that may have a limited impact due to the time of year when production generally exceeds demand, and the inventory of dairy products increases.
CHEESE:
Cheese prices are expected to remain in a trading range in the near term. There is a sufficient supply of cheese available, with strong cheese production sufficiently supplying fresh cheese to the market. Less milk will be available for manufacturing now that schools are back in session.
BUTTER:
Butter is expected to follow a similar pattern as cheese, with the price fluctuating in a range for a time. Bulk butter supplies have declined, and exports remain strong, but that may not be sufficient to support much higher prices in the near term.
