OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 8 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 8 to 14 Higher |
| Soybean Meal Futures: | $4 to $6 Higher |
| Wheat Futures: | 8 to 12 Higher |
MILK:
Milk futures were hit hard Thursday with August and September limit down. However, there was follow-through selling in only the August contract and that was very light. Traders are assessing the market and seem to feel lower cheese prices may result in buying interest during spot trading. If this were to happen, futures could rebound to some extent. However, current fundamentals do not suggest any tightness in the market, which may limit upside price potential. Trading activity and price movement may be limited prior to spot trading. They will wait for further price direction.
CHEESE:
Prices took a big hit Thursday as buyers stepped away from the market. Cash trade may be slow to develop Friday as both buyers and sellers will wait to see who will blink first. It is possible buyers will step back in due to the large price decline as they look to increasing ownership for demand later in the year and the drop in prices may be difficult to pass up in hopes for lower prices.
BUTTER:
Butter price is now back above blocks again. However, that certainly does not indicate price is finding strength and will trend higher. Production will need to slow or demand will need to improve in order to keep price from trending lower.
