OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 2 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 2 to 3 Higher |
MILK:
Milk futures increased nicely on Friday, propelled mostly by the strength in butter. This changes the sentiment of traders as gains of this magnitude in the daily complex are something to take note of. It is unusual to see this type of strength in the early part of the year, after holiday demand is complete. The overnight trading activity shows continued strength despite the bearishness of the December Milk Production report. This may limit the upside price potential, but for now, the strength has improved the outlook for milk prices. Demand needs to improve to maintain the strength. It can be clearly seen that milk production will not decrease much anytime soon.
CHEESE:
Cheese prices are slowly increasing, but there may be a limit as to how high they will move. The strong milk output is not going away anytime soon. The increased milk will need to be processed, keeping cheese supplies sufficient for demand. The Cold Storage report showed more cheese in inventory than a year ago.
BUTTER:
The price increase on Friday was the largest one-day increase since Sept. 27, 2023. Hopefully, this will be the beginning of better prices to come. The butter price jumped 22.0 cents last week. Butter futures have not traded overnight but are expected to show follow-through strength today.
