OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 4 to 5 Higher |
| Soybean Meal Futures: | Steady |
| Wheat Futures: | Mixed |
MILK:
It is unusual to see trading activity in deferred milk futures contracts in an overnight session. However, contracts through June 2026 showed activity last night. This does not indicate a change in attitude or trend, but traders may be gaining interest in buying and holding for the long term. Much of the trading activity has been short term, with traders scalping the market for a quick profit rather than buying or selling for the long term. Milk production in the country has reached its seasonal low, with some areas seeing increases due to cooler weather improving cow comfort. USDA will release the World Agricultural Supply and Demand Estimates (WASDE) report on Friday, providing USDA's estimates for milk production, milk prices, and dairy product prices for this year and next year.
CHEESE:
One would think that the low cheese prices would increase demand, which would cause buyers to be more aggressive. However, such has not been the case with cheese prices nearing the lows last seen in July. Buyers are comfortable with supplies and manufacturers are moving cheese to limit inventory growth.
BUTTER:
Butter has been unable to find support with buyers interested in purchasing supplies but at lower prices. Manufacturers continue to offer butter on the spot market at lower prices to keep it moving.
