OPENING CALLS:
| Class III Milk Futures: | 8 to 12 Higher |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 3 to 5 Lower |
MILK:
It may be difficult for milk futures to regain much of the losses over the past month. Underlying cash prices have not found stability as supply remains readily available for demand. Milk receipts are increasing as cow comfort and feed intakes have improved. Component values in the milk remain exceptional and at record-high levels. This improves cheese yield and provides ample cream for butter production. The proposed tariffs on Mexico and Canada have been pushed back to April 2. This provides more time for negotiations that could result in tariffs not being implemented.
CHEESE:
The January Cold Storage report was neutral for cheese. The growth of inventory was light and remains below a year ago. This may provide stability to cheese prices. However, buyers see no need to be aggressive as there is sufficient supply for demand.
BUTTER:
The inventory increase of 56.0 million pounds of butter in storage was an unusually high increase for January. This has already been factored into the market and may not put further pressure on the market. The current weakness is the result of current production and the level of demand. Churning remains active and supply is sufficient.
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