OPENING CALLS:
| Class III Milk Futures: | 3 to 6 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Traders are looking to scalp the market to hopefully take some profits rather than establish long-term positions. There is little reason for prices to establish a higher trend. The milk supply has decreased slightly, increasing spot milk prices. However, milk production remains higher than a year ago. There is little fundamental news for traders to get excited about. Overnight trading activity was rather active with most contracts higher. This is a bit unusual due to price uncertainty. USDA will release the World Agricultural Supply and Demand (WASDE) report this morning. The report will provide their estimates of milk production, milk prices and dairy product prices for this year and 2026.
CHEESE:
Cheese is expected to remain choppy in the lower area of the price range. Demand is steady with supply sufficient. Buyers have little concern over the supply as sellers continue to offer cheese to the spot market.
BUTTER:
Butter may find some further buying interest today and likely regain the loss of earlier in the week. The cream supply is tightening but remains sufficient for churning and the production of ice cream and other Class II products.
