OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 3 to 4 Higher |
MILK:
Milk futures have not been able to recover from the negativity that has embraced the market over the past month. The initial announcement that tariffs would be put on Mexico and Canada at the beginning of February set a shock wave through the market. That was pushed back to the start of March. On Thursday, Feb. 27, there was a report that it would be delayed until April 2, but shortly after that, President Trump confirmed that it would begin on March 4. This keeps the market off balance and traders guessing of the impact it will have on dairy exports to these top buyers of U.S. dairy products. USDA will release the January Agricultural Prices report Friday afternoon, providing the average prices used to calculate income over feed.
CHEESE:
The trend for block cheese has been sideways while the barrel cheese price has been trending slightly lower. Blocks have been trading in the range they had been in during May through July 2024. Buyers are not being aggressive in the spot market as they are uncertain about demand. Even though inventory is below a year ago, sufficient supply is available.
BUTTER:
Buyers are purchasing what they need and what is being offered to the market. They have not had to chase the price higher. There have been 33 loads of butter traded on the spot market this week. Sellers continue to offer supply to limit the increase of inventory. Buyers purchase and store for later demand at the low prices. The ownership changes hands, but inventory continues to build.
