OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1-3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 6 to 8 Higher |
| Soybean Futures: | 15 to 18 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 5 to 6 Higher |
MILK:
It is not surprising to see overnight Class III milk futures show some strength. Short-covering took place as futures declined on Thursday and Friday, even though the block cheese price increased. The price of crude oil moving above $100 per barrel has not impacted milk futures negatively so far. This could have a greater impact if the conflict with Iran continues for an extended period of time. The weather in much of the country has been conducive to cow comfort and may result in the beginning of the spring flush. Milk output is not slowing down and is projected to remain higher than a year ago.
CHEESE:
The block cheese price is at the highest level since Nov. 11, 2025, and has increased for the past four consecutive days. The price may be near a level at which buyers may step back again. The supply of cheese is readily available.
BUTTER:
The price is expected to be choppy, but may hold above $2.00. Increasing butter production is building inventory, but at a slower pace than last year. Ice cream production is increasing and will utilize greater quantities of cream, reducing the amount available for butter production.
