OPENING CALLS:
| Class III Milk Futures: | 4 to 7 Higher |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | 2 to 3 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 9 to 12 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | Mixed |
MILK:
Fundamentals have changed little recently, which leaves a bearish attitude with traders. Slowly increasing milk production leaves processors with sufficient supply on hand for bottling and manufacturing needs. Spot milk prices are decreasing with milk available at class to $1.00 below. Some plants are making arrangement for handling milk over the Thanksgiving period as more will be available due to reduced fluid demand from schools. There is no concern over plant capacity but planning now may keep pressure off the spot market. Class IV futures may see more pressure Thursday as the impact from lower butter ripples through the market.
CHEESE:
Buyers were a bit more aggressive Wednesday, but upside potential might be limited as underlying fundamentals do not support a steady trend higher. Supply and demand are balanced to slightly negative as inventory is above a year ago. Demand is steady and in line with a year ago, but demand will need to improve for further price strength to develop.
BUTTER:
The drop of butter price Wednesday moved price down to the lowest level since Sept. 25. The weakness Wednesday may keep buyers on the sideline, waiting to see if further weakness develops. Further weakness is expected Thursday.
