OPENING CALLS:
| Class III Milk Futures: | 10 to 25 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 2 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Lower |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 8 to 10 Lower |
MILK:
Class III milk futures post double-digit gains in overnight trading. This strength stems from the February Cold storage report, which showed cheese inventory increasing, but below a year ago. It is unusual for cheese stocks to increase in February. Demand is historically slower in the first half of the year. However, that does not appear to be the case. Strong milk production is being absorbed, and this report supports that. Whether this is sufficient to generate buying interest in the spot market and milk prices to increase remains to be seen. The spring flush period will increase milk availability, but it is expected to be absorbed without difficulty.
CHEESE:
American cheese inventory in February was 3% below that of February 2025. That is a bullish scenario, as strong cheese production was absorbed. Inventory usually increases during this time of year. Total cheese inventory was down 1% from a year ago. This should maintain support under the spot cheese market with higher prices warranted.
BUTTER:
Butter futures posted trade in the overnight session, which is unusual. Trade only took place in the May contract, but the price was up 3.47 cents. Bids placed overnight were higher than the close, indicating a similar reaction as the Class III futures. Cold storage showed inventory 17% below February 2025 and paints a bullish scenario.
