| Class III Milk Futures: | 6 to 15 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 2 to 3 Higher |
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 3 to 4 Higher |
The strength in milk futures on Wednesday carried through in the overnight session. The overnight session was likely the result of further short-covering as traders who were not active during the day session decided to liquidate if further upside develops. There has not been a change in fundamentals that would suggest a tightening milk supply. Even if culling increases due to low milk prices, production is expected to remain above a year ago through the end of the year.
CHEESE:The bounce in cheese prices could result in sellers holding back today in the hopes that buyers will remain aggressive and will bid higher to purchase cheese. The pattern has been that price increases are short-lived. The inability of prices to increase seasonally this year makes it unlikely that any price increases will be sustained.
BUTTER:The increase in the butter price is likely the desire of buyers to purchase at low prices. With the butter price at these levels, it is attractive for end-users to step up to the plate and buy, even though there may be limited upside price potential. However, there may be a limit to what they will pay.
