OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Higher |
| Soybean Futures: | 10 to 12 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 5 to 8 Higher |
MILK:
It has been a good week for milk futures with underlying cash providing strength. Even though futures have been increasing, traders remain cautious over upside potential. There will need to be support from underlying cash to keep the momentum going. Slight weakness of barrels and a steady butter price Thursday causes some concern. Futures are expected to remain choppy with light activity prior to spot trading. With milk production at seasonally low levels, some tightness of milk supply has been reported in some areas. Milk is moving around to fill the needs, keeping both bottlers and manufacturers supplied. Feed prices remain high, cutting into profitability. Premium/supreme dairy quality hay price continues to increase more than grains. However, there is a greater volume of grain fed in comparison to hay, leaving both impacting the cost of production substantially.
CHEESE:
There is some indication cheese demand has improved. This time of year is when buyers should be more aggressive as they purchase for holiday orders, already being placed by packagers and recutters, along with expected retail and food service demand. However, buyers have been obtaining supply mainly in the country without having to be very aggressive on the spot market.
BUTTER:
Price did not move Thursday with no loads traded. Buyers seemed to be waiting to see whether sellers would want to take advantage of the high price to move more product. Without that taking place, buyers may need to step back in more aggressively Friday. Price has not yet reached a level to reduce overall demand. Export demand remains very strong.
