OPENING CALLS:
| Class III Milk Futures: | 8 to 12 Lower |
| Class IV Milk Futures: | Steady to 10 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Lower |
| Soybean Futures: | 8 to 12 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 14 to 18 Lower |
MILK:
Class III futures showed further weakness overnight and traders are concerned even more weakness may develop in cheese. Traders were reluctant to buy into futures as underlying prices increased. Traders feared the upside might be limited, but finally succumbed to the strength over the past two weeks, pushing futures higher. The slight weakness of blocks Wednesday resurrected those fears, causing some liquidation. Cheese prices will need to hold or increase or further selling could erupt. Class IV futures continue to hold a premium over Class III futures due to the higher butter price and the expectation for continued support.
CHEESE:
Dairy Market News reported an uptick in demand for cheese recently in the Central Region. Orders may be coming in with buyers looking to increase ownership at lower prices. Cheese production should decrease to some extent as more milk is diverted to bottling for school accounts.
BUTTER:
Sellers may be more aggressive Thursday during spot trading as price is near the top end of the range. Sellers and buyers have been working within this range for quite some time. More cream is available in many areas as increased bottling for school accounts leaves more cream available for churning. This may reduce the interest of some plants to sell cream rather than churning. This could build inventory.
