OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 1 to 2 Lower |
MILK:
It is another week of likely choppy markets. Underlying cash may continue to follow their pattern of mixed trading on a daily basis. Milk futures show little hope for higher prices over the next two years as there is little price premium being held in the market. Overall milk production continues to slowly improve seasonally due to cooler weather and good feed quality in most cases. Culling has increased with production per cow declining. This might eventually have a greater impact on the market. Overnight futures show strength, which hopefully will continue throughout the day. It will need to be supported by underlying cash.
CHEESE:
Spot cheese prices were unchanged Friday, but that does not mean support has been established. The positive aspect of the cheese complex is that the block/barrel spread has narrowed to 10.75 cents. This does not make the market bullish, but it does move prices more in line with each other. Prices are expected to remain choppy as buyers and sellers take care of business in a somewhat balanced market.
BUTTER:
Price just cannot get a break as butter supply is readily available for demand. Even the bullish Cold Storage report was not enough to trigger more aggressive buying interest and turn the trend back up. More cream has become available, which may increase butter output supplying increased demand.
