OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 5 Higher |
MILK:
Class III milk futures fell back from their highs Thursday after spot trading. Traders seemed to focus on the weakness of barrels after 10 days of higher prices rather than the strength of blocks and dry whey. Milk futures have had an impressive run higher with gains of over $1.00 per cwt in nearby months over the course of the past week. Caution will be exercised prior to spot trading Friday leaving activity somewhat light. Traders have digested the news of late last week when USDA announced the appropriation of money for further food purchases. They realized it was not as bullish as initially thought. Milk production has been slowing as farms adjust to high feed prices as well as other inputs. However, USDA estimates milk production next year will be higher than this year, but only by 1.3 billion pounds.
CHEESE:
It was a surprise that the strength of blocks and dry whey Thursday was not able to keep Class III futures supported. Dry whey moved to a new high since it began trading on the spot market in March 2018, and the highest price in the past nine years. There is concern demand may drop off over the next few weeks.
BUTTER:
The weakness of butter the past two days may be temporary even though holiday orders may be filled. Lower butter output and strong demand has reduced inventory. Buyers have turned their attention to the potential for demand next year. Exports continue to remain strong.
