Thursday Morning Dairy Market Update - Light Trading Activity Expected

OPENING CALLS:

Class III Milk Futures:	2 to 6 Higher
Class IV Milk Futures:	Mixed
Butter Futures:	Steady to 1 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Steady to 1 Higher
Soybean Futures:	3 to 5 Higher
Soybean Meal Futures:	$2 to $3 Higher
Wheat Futures:	2 to 4 Lower

MILK:

Light trading activity and limited volatility are expected ahead of spot trading. Traders will continue to scalp the market attempting to take a little profit with daily price movement. Cheese prices may remain choppy throughout the rest of the year while butter could show further strength as buyers look ahead to first-quarter demand. Weather has been good for cow comfort and milk production in most areas with milk receipts slowly increasing at the plant level.

CHEESE:

Cheese prices may hold at higher levels but remain choppy as buyers and sellers take care of business through the rest of the year. There may be little interest in building inventory too early leaving buyers less aggressive. Increased milk is available to manufacturers, allowing more products to be available.

BUTTER:

Butter buyers may remain aggressive as previous higher inventories have declined despite higher cream supplies and increased churning. Buyers may be willing to purchase a supply for inventory at the current price level. The bottom may be in for a while.