OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Higher |
| Class IV Milk Futures: | 10 to 15 Higher |
| Butter Futures: | 1 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 4 to 6 Higher |
MILK:
Milk futures came alive Wednesday supported by stronger cash. Trading activity and unfilled bids in the spot markets suggest further upside price potential Thursday. Overnight trade in Class III futures shows November, December, and January contracts above $21.00 with February and March not far behind. The market environment has not changed but buyers needed to be more aggressive Wednesday. Orders for the holidays may be increasing, requiring buyers to increase their purchases. However, there is sufficient supply of milk available for demand. Overall milk production should begin to increase in the next few weeks as the seasonal low should be behind.
CHEESE:
The bounce of cheese prices Wednesday was a surprise and certainly a welcome sight. Trading activity would suggest further gain again Thursday as blocks increased 9 cents on a bid with no sellers. However, the jump in prices could bring more sellers to the market to take advantage of the higher prices. The pattern has been that price increases have been short-lived, leaving traders cautious over the gains Wednesday.
BUTTER:
Butter reached a record high Wednesday and is poised to move higher. At the close of spot trading Wednesday, there were 13 unfilled bids with no willing sellers. This would suggest further gains as buyers continue to remain aggressive even at record high prices.
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