OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 7 to 10 Lower |
| Soybean Meal Futures: | $6 to $7 Lower |
| Wheat Futures: | 6 to 9 Lower |
MILK:
Overnight trading activity was nearly non-existent, with traders uncertain over the direction of underlying cash. It is assumed that any price strength in cash will be short lived. The difficulty is determining whether spot prices may find a bottom or continue to see pressure. The weakness in global prices does not improve the outlook for the rest of the year. There was an article in the eDairy publication discussing the potential for significantly higher milk prices, but this projection was for late 2026 and 2027. This would be the natural cycle after a period of low milk prices.
CHEESE:
The stability in the spot cheese prices on Wednesday does not indicate that prices have found support. If butter indicates the direction of cheese, then further weakness will unfold. End users see no need to be concerned about supply and will continue to purchase as needed.
BUTTER:
The butter price declined further on Wednesday, unable to find support. The concern was the bid placed at $1.40 that continued to show business was being done. Many times, a low bid may be the level that will be reached unless buyers become more aggressive, and the buyer needs to raise the bid or not purchase any butter. Any price strength will be limited.
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