OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Mixed |
MILK:
Milk futures came under substantial pressure as traders are bearish on prices due to the continued weakness of underlying spot prices. The market has entered a period of reduced demand, and inventories are being built up. Strong milk production was seen throughout 2025 and is expected to remain this year despite the potential for continued low milk prices. Continued low milk prices will eventually increase culling as the income from beef on dairy calves will not be sufficient to pay the bills. The November Dairy Products report will be released Tuesday afternoon and is expected to show cheese and butter production above November 2024.
CHEESE:
The block cheese price seems headed to retest the low at $1.3325 set on Dec. 23, 2025. So far, the price has been moving in a sideways range over the past month, but there is concern the price will move lower in the near term. Buyers are interested in purchasing, but only at lower prices.
BUTTER:
It is uncertain how much lower the butter price will fall before the market finds support. Lower butter prices have improved demand, but this time of year generally has reduced demand. Lower prices may not be able to stimulate sufficient demand to utilize higher production.
