OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 5 to 8 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 8 to 10 Lower |
MILK:
Underlying cash is providing strength to milk futures. Traders seem to have become a bit more friendly to the market, but they continue to remain cautious. Spot price increases have established a pattern of being short-lived. The market will need to prove otherwise before additional premium will be put into milk futures. On a seasonal basis, milk prices generally peak in the fall and then soften as the market moves through the end of the year. Demand will need to improve, or strong milk production will keep price potential limited. Trading activity will be light until further direction is seen from spot trading.
CHEESE:
Unfilled bids remaining at the close of spot trading Wednesday suggest further upside potential Thursday unless sellers intend to move product at these prices. Some indication of tightening supplies could result in sellers being a little less aggressive for the time being, waiting to see just how aggressive buyers will be. Currently, cheese is available, and production is steady.
BUTTER:
Trading activity on the spot market has been active this week with price showing limited loss. This indicates buyers need to pick up supply for immediate orders as well as in preparation for upcoming demand at current prices. The trend is up and will likely continue that way. Nonfat dry milk is providing continued support to Class IV futures.
