OPENING CALLS:
| Class III Milk Futures: | 6 to 12 Lower |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 6 to 8 Lower |
MILK:
Milk futures were lower on Monday with Class IV futures showing greater weakness than Class III. The weakness continued overnight with Class III contracts 1 to 14 cents lower. The continued weakness of underlying cash is putting pressure on the market. Milk production in January was slightly higher than a year ago putting some pressure on the market. Further pressure stems from the sufficient supply of milk for demand. The USDA will release the January Cold Storage report on Wednesday, Feb. 26. The report will show the level of inventory growth, which will provide an idea of demand. Spot milk is difficult to find, but plants have sufficient for needs.
CHEESE:
The block cheese price remains in a sideways pattern while barrels are trending lower. Buyers have not felt the need to purchase aggressively for potential demand as the level of demand is uncertain in the near term. Until the supply of cheese tightens, prices will continue to chop around.
BUTTER:
The butter price moved to the lowest level since June 21, 2023. Further weakness is possible as buyers anticipate lower prices and see no need to be aggressive. They have been purchasing supplies on the weakness, building inventory for later demand without chasing the market.
