OPENING CALLS:
| Class III Milk Futures: | 2 to 4 Lower |
| Class IV Milk Futures: | 4 to 6 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 2 to 3 Higher |
MILK:
The steady and slightly better spot prices on Wednesday did little to provide support to milk futures. Early strength gave way to minor pressure. The overnight trade continues to show weakness with limited fundamental news to provide support. The October exports of dairy products had been phenomenal, with the best October exports since 2022. However, the volume of exports has not been sufficient to tighten supplies. Exports have been strong due to continued low domestic prices. Not much direction is expected today, with choppy activity likely dominating the action. President Trump finally signed a bill on Wednesday to allow whole and 2 percent milk back into the school lunch programs.
CHEESE:
Spot cheese prices are not expected to move much. Traders are cautious due to the possibility of another decline to new lows in chees prices. Strong cheese production continues to provide sufficient supply to the market, leaving buyers less aggressive. Inventory is expected to build and remain above the year-ago level.
BUTTER:
Butter found some strong buying interest in the spot market on Wednesday, but buyers may not remain aggressive due to plentiful supply. Lower prices should stimulate demand. However, the lower price is not being reflected very much at the retail level, according to the weekly price reports.
