OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 3 to 4 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Milk futures prices have improved substantially over the past three weeks. Underlying cash prices provided support as buyers in the spot market have turned more aggressive. This interest in buying has not stemmed from a tightening supply of dairy products, but from the desire to take advantage of the lower prices. Milk production continues to outpace a year ago, keeping sufficient milk available for bottling and manufacturing. It will not be too long before milk production increases seasonally as the calendar moves toward spring.
CHEESE:
The cheese price increased significantly last week, posting a gain of 11.00 cents with 51 loads traded. Buyers became more aggressive as they tried to purchase at the lowest price they could, resulting in higher prices as they tried to outbid each other. The gains may be tempered somewhat this week.
BUTTER:
The butter market was strong last week, but the real strength was seen in Grade A nonfat dry milk. The price gained 18.00 cents. This is a huge gain for a week and one that is not generally seen in the market. The price is expected to increase further this week as demand is strong and there is a lack of supply.
