OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Stready to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 5 to 10 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Milk futures have had a strong run-up since the middle of January. This has improved the outlook for milk prices, but still leaves much to be desired. Cheese prices have supported the increase, but caution needs to be exercised as demand will need to remain strong and increase to absorb the continued increase in milk production. Beef prices remain strong, which will keep calf prices high. This will continue to have a substantial impact on cow numbers. The strong increase in the latest Global Dairy Trade action may be providing some support.
CHEESE:
The block cheese price has increased over the past three consecutive days, but has yet to exceed the high of Jan. 26. This may take place this week. However, it may be a level of price resistance for cash buyers. It is unlikely cheese prices will continue to trend higher.
BUTTER:
Buyers have been rather aggressive in the butter market as they seek to gain ownership before prices move higher. This motivates them to be more aggressive as they try to outbid each other. The December Dairy Products report will be released Thursday and is expected to show increased butter output compared to the previous year.
