OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 6 Lower |
| Soybean Futures: | 10 to 12 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 7 to 12 Lower |
MILK:
The trend remains higher supported by underlying cash and the outlook for tighter milk supply both in the U.S. and the World. Milk production is improving as spring flush gets under way, but production will not overwhelm the market this year. Plants have sufficient capacity to handle increased milk production due to overall production being lower than a year ago. There are no indications milk prices will fall apart anytime soon. Stabilizing corn prices may temper price increases with some farms looking to add cows again. Cost of production is high, but adjustments are being made resulting in renewed interest in increasing production. USDA will release the February Livestock slaughter report providing the number of dairy cattle slaughtered during the month.
CHEESE:
Block cheese moved to a new recent high and the highest it has been since Nov. 10, 2020. There is no shortage of cheese, but buyers are looking ahead to potentially tighter supply and are increasing ownership sooner rather than later. Prices may retrace but will not fall apart.
BUTTER:
Butter retains strong support under the market. However, price gains are more calculated as if buyers and sellers feel it is well-priced for the time being. The increase of supply in storage in February was a bit of a surprise, which may temper the market a little.
