OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 1 to 2 Lower |
MILK:
Surprisingly, Class III futures have found strong buying interest overnight. Spot cheese prices have not indicated a bottom has been reached, with new lows for the year reached Wednesday. Underlying cash prices will need to show some support Thursday, or futures will fall back. Fundamentally, there is little reason for prices to show much upside potential, as much of the holiday purchasing has been completed, and higher milk production keeps sufficient supply available for demand.
CHEESE:
Cheese prices have fallen to the lowest level since early 2024 and show no sign of support. Buyers feel confident that supplies will remain ample and lower prices may continue to unfold. There is little interest in buying and storing.
BUTTER:
Butter seems to have support as holiday buying has improved. This is positive for now, but there is concern over the price once buying for the holiday season is finished. Churning is expected to remain strong into next year as cream supplies remain plentiful. The butterfat content in milk remains high.
