OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 10 to 15 Higher |
| Soybean Futures: | 10 to 15 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | Mixed |
MILK:
Milk futures were under pressure for no reason other than the disappointment that barrels could not hold or increase in price Wednesday. Fundamentals of the market have not changed. Milk supply remains plentiful for bottling and manufacturing needs. There is no concern over supply tightness. There are two things that the trade will keep an eye on. The extreme heat and drought that is taking place in the West and Northwest and the rebound of grain prices as result of the Acreage and Quarterly Stocks reports yesterday. Both of these could have some impact on milk production. But for right now, there is plenty of milk available for demand.
CHEESE:
Cheese prices may find further strength as buyers might be stepping up to the plate at current prices in order to increase ownership for later demand. The concern is that there are reports that increasing cheese inventory may limit the interest in purchasing due to sufficient supply. Buyers have been able to purchase what they need without having to chase it.
BUTTER:
The supply and demand balance of butter may keep price near the current level for the foreseeable future. Inventory is 7% above a year ago with churning remaining active. This will leave buyers unconcerned over supply. Exports have been very strong and should remain that way as price remains competitive on world market.
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