OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Milk output continues to remain significantly higher than a year ago. Cow numbers continue to increase despite the average slaughter of dairy cattle. Cow numbers in March were 187,000 head more than in March 2025. Kansas had the highest increase, with cow numbers up 51,000 head from a year ago. Texas showed an increase of 34,000 head, with Wisconsin up 28,000 head. Other states in the top 24 showed lower increases or declines. The trend for increased milk production and cow numbers is expected to continue throughout this year. USDA will release the March Cold Storage report Friday afternoon.
CHEESE:
The increase in the barrel cheese price was bound to happen as the price had remained unchanged for a time. The minor increase in blocks may indicate the price may have difficulty increasing much further, as increased cheese production keeps sufficient supplies available to the market.
BUTTER:
The weakness of butter has been surprising. Sellers keep offering it to the market to keep inventory from building at the plant level. Butter inventory being significantly below a year ago has had no impact on buyers as they continue to purchase supplies at lower prices. The U.S. price is about $0.95 per pound below the world price, which will keep international interest strong.
