OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 1 to 2 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 6 to 8 Lower |
MILK:
It may be difficult for milk futures to find good buying interest ahead of spot trading. The weakness of Class III futures last week will be difficult to overcome unless there is strong buyer interest in the spot cheese and dry whey markets. The spot cheese market has been choppy and is expected to remain that way for a time. Class IV futures have shown greater support due to the strength in butter, but futures are not expected to trend higher without further support from the spot butter price. The January Milk Production report will be released on Friday and will have an impact on the market.
CHEESE:
Cheese prices are expected to remain choppy. Supplies are sufficient for demand, with buyers showing little concern about supply tightness. This is not expected to change anytime soon. Milk production is holding and improving, with sufficient milk available for the vat and spot prices running below class.
BUTTER:
The weakness in the spot price on Friday could carry over to Tuesday as buyers may hold back to see if sellers become more aggressive at the higher price. Cream supplies are abundant, and butter plants are running seven days a week.
