OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 6 to 9 Lower |
| Soybean Meal Futures: | $4 to $5 Lower |
| Wheat Futures: | 3 to 4 Lower |
MILK:
The milk production report was released Friday and showed continued strong milk production, production per cow, and higher cow numbers. The addition of 14,000 cows in the country indicates the retention of cows continues. With the recent increase in milk futures pointing to the potential for higher milk prices, the desire to hold onto cows will continue. Not only the potential for higher milk production, but also the continued high prices for calves. The USDA will release the January Monthly Cold Storage report on Tuesday, providing a good picture of demand for the month.
CHEESE:
Traders will be cautious due to the weakness of the block cheese price on Friday. This may indicate buyers have reached a threshold. If they are unwilling to bid higher to purchase cheese, sellers may become more aggressive as they want to sell at the highest price possible. This could push the price lower again.
BUTTER:
It is uncertain how much potential the market has after the substantial gains of last week. The government has indicated it will purchase $75 million of butter for food banks. This seems to have spurred the recent buying in the spot butter market. This purchase may now be factored in with limited upside potential from here.
