OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 4 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
Traders will exercise caution today ahead of spot trading with uncertainty over spot trading price movement and activity. The activity on Wednesday left much to be desired. The fundamentals have not changed much. Milk production is increasing seasonally, with manufacturing increasing as a result of the higher milk supply. Increasing supplies are expected to increase along with demand, leaving supplies sufficient and upside price potential limited. The World Agricultural Supply and Demand Estimates (WASDE) report will not be released today. This report was not a market-mover but did show USDA's estimates for milk production, milk prices, and dairy product prices for this year and next.
CHEESE:
Cheese prices are expected to remain in a range. There is little to push prices significantly higher or lower. Demand is expected to improve as we move to the holiday season, but there is no concern or indication that supplies will be tight.
BUTTER:
There is a strong possibility that the butter price will revisit the recent low of $1.62. Buyers see no need to be very aggressive in the spot market, as manufacturers have sufficient supply and will continue to offer it on the spot market to limit inventory build-up at the plant level.
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