OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 5 to 6 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 4 to 6 Higher |
MILK:
Milk futures may be settling down after the wild price swings in the market. They have come back in line with the underlying cash and now may move accordingly. There remains concern that the spot cheese and butter prices will decrease further, but there is no way of knowing that with any certainty. What we do know is that milk production is strong and will remain that way for the foreseeable future. Some expansions continue to take place, and cow numbers are increasing. Trading volume may be light until further direction is seen from spot trading.
CHEESE:
Further pressure may be put on cheese prices as increased milk production keeps plants well supplied with milk for processing. Retail demand is good and export demand is strong, but it is not enough to support a higher price trend. Prices are expected to remain sideways and choppy.
BUTTER:
Even though the price has declined 7.50 cents over the past two days, it is retaining a good portion of the increase since Jan. 13. Hopefully, the market will find support near the current level. Inventory closed out 2025 down 7.0% from the previous year. This was a surprise to the market and a testament to good demand.
