OPENING CALLS:
| Class III Milk Futures: | 15 to 30 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 6 to 8 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $4 to $5 Lower |
| Wheat Futures: | 8 to 10 Lower |
MILK:
Class III milk futures came under substantial pressure late Thursday and continued that pressure overnight. It seems the selling is the result of President Trump moving forward with 25% tariffs on Mexico and Canada on Feb. 1. This could impact agricultural trade between the countries as both Mexico and Canada indicated they would retaliate with their own tariffs. Traders are reacting to the fear of reduced dairy product exports. The December Agricultural Prices and Cattle Inventory reports will be released Friday afternoon.
CHEESE:
Traders will focus on spot cheese trading Friday to see whether buyers remain aggressive or if sellers will sell cheese more aggressively. If cheese prices increase, the recent heavy losses in milk futures may reverse to some extent. However, traders will remain cautious ahead of the weekend.
BUTTER:
The butter price continues to weaken with price falling back to the lowest level since June 30, 2023. Further weakness is possible as buyers see no need to be aggressive and butter plants want to limit the building of inventory. Churning remains active, leaving sufficient butter supplies available to the market.
