OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 7 to 8 Lower |
MILK:
Milk futures continue to chop around with traders scalping the market and creating market movement that sometimes is contrary to the underlying cash. Traders seem to think the upside potential for block cheese is limited. The USDA will release the February Milk Production report Friday afternoon. The report is expected to show higher milk production than a year ago. I estimate milk production to be 3.5% higher than in February 2025, with cow numbers unchanged from January.
CHEESE:
Cheese production is increasing as more milk moves to the vat. This will keep sufficient cheese available to the market and may limit the upside price potential. However, buyers are aggressively purchasing cheese in the spot market to increase their ownership and to meet the current demand for fresh cheese that is 30 days old or less. Some cheese is moving to the retail market while some is being put into aging programs.
BUTTER:
The buying interest in butter that limited the losses in the spot market on Thursday may indicate the market has found support. However, it is not likely a price rebound would regain the recent losses anytime soon. Buyers have been able to purchase a significant amount of butter to put into storage for later use.
