OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 6 Lower |
| Soybean Futures: | 1 to 4 Higher |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | Mixed |
MILK:
Trading is expected to be light Friday unless there are some significant changes in underlying cash. That is not expected, but not out of the question. It all depends on what business needs to be accomplished. Milk production has been declining seasonally, but impact from hot and humid weather is not likely to be much of an issue now that we are in September and cooler weather. Milk availability is not as heavy as it has been for quite some time, but there still is sufficient supply for manufacturing and bottling. We are in the period during which demand generally increases as buyers prepare for fall and end of the year demand. Hopefully, this will improve prices. USDA will release the July Dairy Products report Friday.
CHEESE:
The trend of cheese prices remains sideways. If this continues over the next two months, milk prices might be in trouble and lower prices could unfold. Buyers currently see no supply tightness even though there are reports of strong demand for certain varieties of cheese of which some orders had to be turned down by some plants. Those buyers had to turn elsewhere to obtain the cheese they needed.
BUTTER:
Price is close to reaching back to $1.80, a level it has not been since June 17. The uptrend seems to be solid as both domestic and international demand is strong and improving. Buyers have been stepping up to the plate more aggressively as they prepare for fall and holiday demand.
