OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Lower |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
The overnight trade certainly does not paint a good picture for the market Monday. Trading was active, but unfortunately, futures were lower with some contracts posting double-digit losses. The reason is uncertain for the pressure based on the higher block cheese price on Friday. However, the indication of the market is for strong milk production and a sufficient milk supply for some time. The early part of the year seasonally sees reduced demand. Strong milk production and reduced demand mean increasing inventory. Increasing inventory and reduced demand result in lower prices, which does not bode well for the market.
CHEESE:
The increase in the block cheese price on Friday seems to have no influence on the market at the start of the week. Less milk will be available for manufacturing as schools are back in session, and increased bottling will reduce supplies. However, that will have little impact on the market as the supply of milk remains significantly higher than a year ago.
BUTTER:
The butter price did not begin the year on a positive note. Buyers are willing to purchase butter, but at lower prices. It is uncertain how low the market will go before support will be found.
