OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 3 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
The milk production report has been digested and traders are looking ahead to the February Cold Storage report released Tuesday. It is one thing to see higher milk production and it can be another to see whether inventory has decreased or increased. If inventory remains below a year ago even though milk production increases, it indicates demand is strong. Higher milk production and increased inventory would be negative for the market. Tuesday's cold storage report will be skewed when we see the numbers as it compares 28 days this year to 29 days in February 2024. Inventory growth may not be as much in comparison. In the overall picture, it will not make any difference as what is in inventory compared to what is available to the market. Milk production has been improving and inventory has been increasing as it generally does at this time of year.
CHEESE:
It was refreshing to see the substantial increase in the barrel cheese price on Monday. However, buyers may not be willing to bid aggressively for supply as cheese production has been steady. Demand remains lower than expected, but some gains may be seen as the year progresses. The concern is the impact of tariffs on food prices causing consumers to make adjustments to the food they purchase. This could reduce the consumption of products that contain cheese or other dairy products.
BUTTER:
The butter price is expected to remain in a sideways range with buyers able to purchase what they need to fill orders and build inventory for later demand. Cream supplies remain abundant, but there is some indication that the supply of cream is beginning to decrease.
