OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 6 Higher |
| Butter Futures: | 2 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 4 to 5 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 2 to 3 Higher |
MILK:
Class III milk futures are increasing in response to the gains in the block cheese and butter prices. The fundamentals have not changed much, but there may be some interest due to the impact of whole and 2% milk being made available for school lunches. That may not result in a significant increase in consumption, but it does provide an avenue for increased demand. USDA will release the January Milk Production and Cold Storage reports Friday.
CHEESE:
The block cheese price has been steady or higher for the past five consecutive days. The block price has finally moved above barrels, where it has not been for some time. Cheese production remains strong with sufficient milk supply. This may limit the upside price potential.
BUTTER:
The butter price continues to increase as buyers may have reached a level at which they may be more aggressive and outbid each other to purchase supplies before the price moves higher. Once the buying interest runs its course, there could be a void under the market. It is not certain that a bottom has been found.
