OPENING CALLS:
| Class III Milk Futures: | 5 to 8 Higher |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Class III milk futures tried to post gains on Thursday after spot trading showed blocks gained 1.50 cents and dry whey gained 1 cent, but the strength was short-lived. The market is bearish and will need much more strength in the underlying cash before traders change their attitude. The market needs to see positive fundamentals that may indicate better demand and tightening supplies. Spring flush is beginning and increasing milk supply may put further pressure on the market. Demand may not improve much if the current economic situation continues to hold or increase consumer prices. USDA will release the February Milk Production report today. Adjustments will be made to compare to a year ago due to one less day this year than in 2024.
CHEESE:
The strength in cheese prices will likely result from buyers needing to fill orders and not a change in trend. They have little interest in purchasing for later demand unless prices decline. Most of the buying is on an as-needed basis. Buyers are not concerned about the supply. Manufacturers want to limit building inventory.
BUTTER:
The butter price is not expected to move much for the foreseeable future. Churning is active with sufficient supplies available for demand. Buyers have increased their ownership of supply on price weakness as sellers continue to offer butter on the spot market. This may limit the need to become aggressive later in the year.
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