OPENING CALLS:
| Class III Milk Futures: | 6 to 12 Higher |
| Class IV Milk Futures: | 10 to 15 Higher |
| Butter Futures: | 2 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 2 to 3 Lower |
| Soybean Meal Futures: | $1 to $3 Higher |
| Wheat Futures: | 3 to 4 Lower |
MILK:
Overnight trading activity gives the impression that traders feel further gains may take place in the spot market. Trading activity was light, but futures were higher. Class IV futures showed some unusual activity with a substantial increase in the July contract of $0.57 cents, with 5 loads traded. Usually, when trade like this happens, it is due to a market order being filled. This could be either from someone wanting to buy, not realizing the closest offer was that far away, or a stop order was triggered. In this case, it likely was a market order being placed as the 5 contracts only traded at that price. A stop order would have seen other trades taking place before the stop was triggered. Maybe this is an indication that underlying cash will support higher prices.
CHEESE:
The strength in block cheese on Wednesday does not solidify a change in trend, but may indicate that the price is supported. The price will need to move above $1.6725 before it would indicate a change in trend. Higher milk production and increased cheese output may make this difficult to achieve.
BUTTER:
It is unusual for butter futures to trade overnight, but futures showed surprising strength from 2.50 to 4.85 cents higher. If the spot butter price shows further strength today, it may indicate increased support developing under the market. Demand may be improving, resulting in buyers needing to be more aggressive.
