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: | 4 to 6 Higher |
| Soybean Futures: | 8 to 12 Higher |
| Soybean Meal Futures: | $5 to $8 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Milk futures posted some nice gains Thursday. Class III increased despite the decline of barrels. Traders seem reluctant to press the market to the downside, even though there is weakness in underlying cash. There is anticipation of demand improving, but there is caution being exercised as well due to the uncertainty of demand. Demand should increase seasonally, but it may not increase as much as it generally does through the end of the year. Milk production is slowly improving but may not increase as much as it did last year. That may be beneficial to keep milk prices higher. Milk futures are expected to be mixed prior to spot trading.
CHEESE:
Cheese has yet to find solid support. Even if prices increase, traders will be reluctant to buy into the market as price increases have been short-lived. Cheese output is steady but at a slower pace due to ongoing workforce issues. This leaves plants running near capacity of what can be manufactured rather than the capacity of plants. However, inventory is building.
BUTTER:
Price has good support which may keep it above $3.00 as the calendar moves toward fall. Trading activity on the daily spot market remains strong as buyers are not able to find everything they need from sources in the country. Yet, there is plenty available as sellers remain active.
