OPENING CALLS:
| Class III Milk Futures: | 3 to 8 Higher |
| Class IV Milk Futures: | 4 to 10 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 2 to 3 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 4 to 5 Lower |
MILK:
The World Agricultural Supply and Demand report released on Thursday will have no impact on the market Friday. However, the report showed the USDA estimates milk production to increase significantly despite low milk prices. They increase their estimate for this year by 1.0 billion pounds and the same for 2027. If this comes to fruition, the milk production increase this year would be 4.7 billion pounds more than in 2025. Demand will need to increase significantly to keep pace with supply to shift milk prices higher. Trading activity is expected to be light ahead of spot trading Friday, with limited price movement expected.
CHEESE:
The divergence in price between blocks and barrels on Thursday was unusual. The decline in barrels had no direct impact on the Class III milk price. However, it may indicate the overall weakness in the market or the continued inability of prices to see much upside potential.
BUTTER:
Spot trading activity in butter and nonfat dry milk has been substantial this week. There have been 101 loads of butter and 46 loads of nonfat dry milk traded in the spot market. Buyers and sellers have been active; unfortunately, prices have been lower. Nonfat dry milk has seen substantial weakness since its peak, with the price falling faster than it increased
