| Class III Milk Futures: | 2 to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 6 to 9 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 2 to 3 Higher |
It was surprising to see the unusually heavy trading activity in Class III futures overnight. Trading was confined to the March, April, and May contracts with the April contract showing 169 contracts traded. Futures were steady to lower as traders remain cautious over the upside price potential. The underlying cash prices continue to remain low, with limited aggressive buying interest. Milk futures have adjusted to the correlation of cash and have limited seasonal premium in the market. Milk production is holding steady with some reports of production increasing as the weather is improving cow comfort.
CHEESE:The block cheese price below barrels keeps a negative tone in the market. Buyers remain unaggressive, limiting purchases due to the uncertainty of both domestic and international demand. Tariffs could have a significant impact on exports, which would result in lower prices. However, lower prices could stimulate demand. It is too early for a seasonal price increase as spring flush is not far away.
BUTTER:The bounce of the butter price may be short-lived. The price has not been able to hold gains for the past months as price increases are the result of immediate buying to fill orders and not long-term buying for demand. Cream supplies remain heavy, keeping butter readily available to the market.
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