Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
Outside Market Opening Calls:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 4 to 7 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 7 Lower |
Milk:
USDA will release the February Livestock Slaughter report Thursday. The report records the number of dairy cattle slaughtered for the month as well as other cattle. The report is not a market-mover, but it does give an indication of the outlook of dairy farmers. However, the slaughter number in some way does not matter too much as we already know that cow numbers increased 3,000 head from January and were 81,000 head more than a year earlier. Those numbers were released on the Milk Production report last week. There are always sufficient replacements ready to come into the herd. Increasing milk production and increasing cheese output may keep milk futures steady to lower as supply increases.
Cheese:
Cheese prices have not been able to break out of a price range since November. There has been some price volatility, but it has been confined within a range. Increased government purchases for food programs has not been sufficient to move the market higher as it did last year. Increasing demand from the food service industry has not been able to move it higher either. More of the same is expected for the foreseeable future.
Butter:
It appears butter will outperform cheese for a period of time. It has been more responsive the increasing demand from restaurants and has been showing some strong demand from the international market. Fresh butter supply has caught up with demand, leaving buyers with sufficient supply. Inventory is growing, but not as quickly as it seasonally does. There is no concern over supply tightness, but current demand has raised price to a level where buyers and sellers are willing to do business.
