OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 2 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | Mixed |
MILK:
Milk futures have been strong and supported by the underlying cash prices. Buyers in the cash market remain aggressive as they look to increase ownership of dairy products. This has not been due to a lack of milk, as production has been strong and continues to run significantly higher than a year ago. With the potential for higher milk prices as seen on the futures market, farmers will continue to add cows and push milk production to take advantage of the better prices. The idea that culling would increase due to low milk prices, and after some marginal cows have calves, may dissipate. The desire will be to increase production and to keep breeding and selling beef on dairy calves. The increasing of government purchases of dairy products for food banks has provided strength to the market despite the uncertainty of how and when it will take place.
CHEESE:
The strength in barrel cheese on Wednesday was a surprise. The greater surprise was that even the seven-cent increase did not result in any trades taking place. Cheese production is strong, with sufficient supply available. Buyers are aggressive in their desire to increase ownership to protect against the possibility of further strength.
BUTTER:
The price increase pushed the April through August butter futures contracts limit up. This will result in expanded price limits Thursday. Butter futures have added a substantial premium to futures with the September and October contracts at nearly $2.30 per pound. The last time the cash price was at that level was in August 2025.
