OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 6 to 12 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Traders may be uncertain over the strength or weakness of spot prices, leaving them guessing as to price direction ahead of spot trading. Market fundamentals are not creating a long-term trend other than sideways. Milk production is reported to be steady this week compared to last week. It may remain that way and begin to show some increase as the weather outlook is conducive to steady to higher milk output. The spread between Class III and Class IV futures has widened due to the strength of butter and nonfat dry milk, moving it back to the level seen last fall. The calculation for price based on the spot prices on Wednesday showed a Class III price of $15.17 and a Class IV price of $18.55. Bear in mind that this is just based on Wednesday's prices. The average over the month is from the weekly AMS prices, which are based on the daily spot prices that manufacturers use for pricing. Class IV milk is in a strong position.
CHEESE:
The weakness of cheese on Wednesday may increase the desire of buyers to step into the market more aggressively Thursday. However, there is a sufficient supply of cheese to satisfy demand, with buyers having little concern over supply tightness.
BUTTER:
The volume of unfiled bids in the spot market on Wednesday suggests the potential for further gains Thursday. Retail butter demand has improved, and export demand remains strong. This should keep buyers active even though supplies are readily available.
