OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Higher |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 3 to 4 Higher |
MILK:
It is unusual to see milk futures trading activity in contracts in the second half of the year during the overnight market. There is interest in buying those contracts with the anticipation of stronger prices as the year progresses. However, to see higher prices the demand needs to improve. Lower milk production than a year ago and the current lower demand leaves the market balanced and prices lower. Weather has been generally good for cow comfort. Milk component values remain at record levels. The Dairy Margin Coverage signup period begin Wednesday and runs through March 31. Signup takes place at your local FSA office.
CHEESE:
Spot trading on Tuesday suggests higher cheese prices might be seen Wednesday. Prices moved higher with no trading activity. No sellers showed up during spot trading, suggesting they are holding for higher prices. However, business will be done as buyers and sellers need to either move supply or fill orders.
BUTTER:
The butter price declining to the lowest level of the year and back to the lowest since Dec. 16, 2024, may indicate that the price could fall back to the low of $2.4650 from Dec. 13, 2024. It certainly is a different market than a year ago when the price was trending higher. Higher inventory and abundant cream supplies may keep the price lower for a while.
