OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 2 Lower |
| Soybean Futures: | 5 to 9 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
Class III futures have little, if any, premium in contracts through the next year. This will not change unless cheese price can establish a solid uptrend. The concern is what underlying cash will do over the next few months. If fall and holiday demand is not able to push prices higher, milk prices at the end of the year and early next year may be lower than milk futures currently indicate. Strong milk production continues to satisfy demand for bottling and manufacturing.
CHEESE:
Steady cheese prices Thursday left traders without direction. That uncertainty carried through overnight. Trading activity may be limited until spot trading again. It was positive that prices did not fall back, but it is negative that they were not able to increase.
BUTTER:
Price is still in an uptrend, but further weakness could change that. Churning activity has slowed due to tighter cream supply and higher prices for cream. This makes plants less willing to purchase additional cream for churning. This results in more inventory being used to satisfy demand. Reducing inventory should support price.
.jpg)
