OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 3 to 4 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 6 top 8 Lower |
MILK:
The strength of the market continues after the release of the milk production report last week. Trader sentiment seems to have changed with support seen under the market. The decrease in cow numbers, milk production per cow, and milk production has turned the market more positive. Now, it will be up to demand to carry the baton over the next few months. If demand does not improve, the market may stabilize for a period. Milk prices will need to improve, or continued liquidation of cows may continue. USDA has announced that dairy producers can sign up for the Dairy Margin Coverage (DMC)program beginning on Feb. 28 and continuing through April 29.
For those who sign up for 2024 DMC coverage, payments may begin as soon as March 4, 2024, for any payments there might be in January 2024. The Agricultural Prices report will be released on Feb. 29, which will determine whether there will be any payments.
CHEESE:
Cheese prices seem to be supported, which may see further buying in the spot market as some traders get concerned over higher prices. This may result in more aggressive buying as buyers may try to outbid each other. However, this could be subdued due to the January Cold Storage report being released Monday, which had been delayed from Friday due to technical issues.
BUTTER:
The trend in butter should continue as buying is taking place for Easter demand as well as for longer-term ownership for expected demand later in the year. Manufacturers seem a bit more tight-fisted with their supply as the market exhibits strength.
