OPENING CALLS:
| Class III Milk Futures: | 10 to 30 Lower |
| Class IV Milk Futures: | 5 to 15 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $1.00 to $1.70 Lower |
| Wheat Futures: | 2 to 4 Lower |
MILK:
The September Milk Production report will be released later Thursday. After seeing the USDA's dairy market outlook last week, the assumption is that milk production will be reduced from September's report. A small, expected reduction in an already huge amount of supply feels more like taking a pond's worth of water out of the ocean; however, with the demand the market has had recently, we've come to count on the ample availability of milk in the market. Another report to be released later Thursday will be NASS's monthly commercial slaughter data. For dairy, the market is watching the amount of cull cows going to slaughter. An increase could signal a reduction in milk supply. Overnight markets are trading 1 to 27 cents lower.
CHEESE:
Cheese has had an impressive run higher this month in both the spot market and the futures market. Wednesday's decline in cheddar blocks, while a large decline of 9.75 cents, is still well above last week's average price. Futures are currently trading steady to 1.6 cents lower. The Cold Storage report will be released Friday for a better look at current inventories.
BUTTER:
Butter has not yet traded on the overnight markets. Thursday's trade is expected to follow direction from the cash market. Butter was lower Wednesday following cheese and nonfat dry milk. Butter output has fallen from its peak in the first quarter of the year, despite the large amounts of cream available.
