OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 6 Lower |
MILK:
Milk futures had a strong Wednesday with overnight trade showing follow-through buying. Traders who had not been watching the market Wednesday realized the strength and wanted to liquidate positions because of the strength and market uncertainty. Underlying cash prices will need to show gains to support the move or futures ould fall back. It seems the strength Wednesday was driven more by the anticipation of prices increasing rather than a fundamental reality. With milk production increasing seasonally and the current demand for dairy products, it seems a strong price rally may be short-lived. The hope is for demand to improve and further support to develop.
CHEESE:
Cheese prices steady to a penny higher Wednesday might cause buyers to be a bit more aggressive Thursday as maybe the bottom has been reached. There may be a limit to how aggressive buyers will be, but any interest and increasing prices would be beneficial. Buyers may remain cautious over buying too much ahead of time and then paying storage for an extended period. However, these lower prices may make it more feasible for longer-term ownership.
BUTTER:
Price may be supported as buyers remain more aggressive ahead of holiday demand. Butter production is steady with cream readily available. Even with strong butter production, inventory has not been able to build very much as demand remains strong. Butter price is expected to be supported but remain in a range.
