OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $0.50 to $1 Lower |
| Wheat Futures: | 6 to 8 Higher |
MILK:
Milk futures did not keep pace with spot prices Wednesday. Class III futures should have seen more strength due to the increase in cheese prices. Class IV futures should have declined further due to the weaknes of Class IV futures. Traders seem to believe the movement of the underlying cash will remain choppy and the gains or losses on one day may be reversed the following day. Strong milk output would suggest limited upside price potential, but increasing demand may keep pace with the increase. The January Dairy Products report will be released Thursday afternoon. This report should show continued strong butter and cheese production. Due to this report, no Dairy Revenue Protection prices will be released Thursday.
CHEESE:
If the block cheese price increases Thursday, it will move to the highest level since Nov. 11, 2025. However, the last time the price reached this level, it fell back as buyers did not want to bid higher. The same could happen Thursday, as that could be a price threshold.
BUTTER:
The volume of unfilled bids at the close of spot trading Wednesday suggests the price weaknes may be limited. The substantial volume of loads traded may be a detriment to the price later, as buyers will have quite a bit of butter on hand unless demand continues to increase.
