OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Mixed |
MILK:
Current fundamentals would suggest limited upside price potential for milk prices through the end of the year. If this comes to fruition, the outlook for early next year would be somewhat dim. If price cannot increase during the time of year during which demand is strong, prices during a lower demand period may not be very good. Milk futures are not finding any support from underlying cash as cheese prices continue to remain in a range. The main support for both Class III and IV futures comes from the strength of dry whey and nonfat dry milk prices. However, these are only providing some support and are not enough to move the market higher. Light, choppy trading is expected Friday.
CHEESE:
Spot cheese priced continue to trade places nearly every day. The result has been a fairly steady daily calculated price. Higher American cheese stocks on the Cold Storage report may make it difficult for cheese prices to move out of the sideways trading range they have been in for much of the year.
BUTTER:
Spot price may move higher Friday in continued response to butter inventory falling below the level of a year ago. Strong domestic and international demand has finally impacted the market enough to provide support. Price may be able to renew the uptrend if further strength is seen Friday.
