Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
Outside Market Opening Calls:
| Corn Futures: | Mixed |
| Soybean Futures: | 4 to 7 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 5 Lower |
Milk:
There has been little change in market fundamentals. Two major reports are behind us. Milk production continues to increase, and inventory continues to build. Neither of these showed anything unexpected. Milk production seasonally increases in February and inventory seasonally increases during the first half of the year. Buyers of dairy products see there is sufficient milk available for the production of dairy supplies. This may leave them less aggressive for a period of time. Demand has been good, but not exceptional and has not been enough to tighten supply. Milk plants indicate milk receipts are growing with some plants being offered extra loads of milk but are unable to take them.
Cheese:
Cheese inventory increased in February along seasonal levels, resulting in a neutral Cold Storage report. American cheese inventory is the highest since May 2020 after cheese inventory increased substantially during April and May of last year as a result of COVID-19. There is no tightness in the market with cheese readily available for demand. Recent price weakness is expected to continue slowly eroding price.
Butter:
There is no clamoring for new-crop butter as there had been after March 1. Fresh butter supplies have increased sufficiently since Dec. 1 meeting current demand. Inventory is sufficient to satisfy demand. Increased retail demand for the Passover/Easter season has been met. The restaurant pipeline has been filled with demand settling down to the usual. Price is expected to drift for a period of time.
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