OPENING CALLS:
| Class III Milk Futures: | 4 to 10 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 7 Higher |
| Soybean Futures: | 5 to 8 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Milk futures have been unable to find support. Underlying cash is weak. Even if steady prices are seen, selling pressure continues. Prices seem overdone to the downside, but as long as weakness is seen there will be limited interest for buying into the market. Milk production continues to run below year-earlier levels and will see further impact over the next few weeks due to hot weather. However, farms have done a good job with providing systems to keep cows cooler, reducing some of the heat stress. Overnight trading activity was very light, but it points to further pressure on the markets Friday. Sometimes there can be some short-covering prior to a weekend, but that may only take place if some support is seen from underlying cash.
CHEESE:
The drop in cheese prices Thursday moved blocks to the lowest level since March 16 and barrels to the lowest level since March 21. The question is whether lower prices will stimulate buying interest. Inventory is plentiful to satisfy demand with cheese production ongoing. Fresh cheese is readily available to the market.
BUTTER:
Price moved to the $2.90 support level. The recent weakness may cause buyers to hold back as sellers look to move product. Spot trading showed a large volume of butter moving during the trading periods. Sellers are anxious to move supply rather that hold it. Slowing demand could move cash prices lower.
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