OPENING CALLS:
| Class III Milk Futures: | 8 to 15 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 2 to 3 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 8 to 10 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 6 to 8 Higher |
MILK:
Milk production continues to increase seasonally, but has not yet moved into the spring flush period. The level of production this spring is uncertain, but the milk supply should be handled without difficulty due to increased processing capacity. Both bottling and manufacturing are running on full schedules, with increased milk output moving to manufacturing. The outlook for better milk prices may increase milk production as farmers try to take advantage of the potential for higher prices. Milk production is expected to remain above a year ago, with cow numbers increasing. The February Federal Order class prices will be released Wednesday. The trade estimates the Class III price at $14.91 and the Class IV price at $16.10.
CHEESE:
Cheese prices are expected to be choppy as buyers look to increase ownership of supplies, but may have a price threshold due to increasing cheese production and sufficient supplies.
BUTTER:
Butter continues to show surprising strength for this time of year. Buyers have stepped in aggressively to purchase for increased demand and to build inventory that is currently below that of a year ago. Abundant cream supplies and active churning have not overwhelmed the market supply.
