OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 15 to 20 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 8 to 10 Lower |
MILK:
The pressure on milk futures came not only from the decline in cash prices, but from weakness in the equity markets. The fears of a recession and its impact on dairy demand leave a bearish uncertainty in the market. Even though the tariff news is concerning, milk production continues to increase seasonally. China announced the addition of a 34% tariff on all imported goods from the U.S. This is in addition to the tariffs already in place. This may reduce exports of dairy products to China. They are not a large buyer of dairy products, but any demand reduction is not good. USDA will release the February Dairy Products report Friday afternoon, providing a breakdown of dairy products produced during the month.
CHEESE:
Cheese prices are expected to remain in a range. Cheese production is increasing as more milk is available to manufacturers. Spot milk is being offered as much as $4.50 below class. Prices are expected to weaken as the spring flush continues and more milk becomes available.
BUTTER:
Retail butter demand is improving as consumers purchase supplies for the Easter season. Low prices are increasing buying interest with some consumers purchasing extra supplies and freezing them for later use. Manufacturers are operating at capacity with sufficient supplies available to the market. Sellers continue to offer supply on the spot market despite the low price.
