OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 7 to 10 Lower |
MILK:
The Consumer Price Index on Thursday put pressure on milk futures and kept it on even though cheese prices increasing during spot trading. Demand information is mixed. Fluid milk demand is steady to improving overall. Cheese demand is variable with food service holding while retail demand is slipping somewhat. Milk production is steady to improving, keeping plants supplied with milk to satisfy demand. Milk production is expected to slowly increase during the rest of the year. Many farms report their cows are milking well with components running higher than last year. Milk futures are expected to show light volume and mixed trade prior to spot trading. Traders see continued choppy prices.
CHEESE:
Block cheese price has regained the losses since Sept. 15, but continued gains may be difficult to unfold in the current market environment. Traders see limited upside potential with concern over ongoing demand. The heavy amount of holiday buying concludes during the month of October into early November with fill-in buying continuing as orders come in. End users are not keen on buying at the last minute as delivery times may be uncertain. They will purchase ahead of time.
BUTTER:
Price is holding as it is supported but may also have reached a ceiling at the record high last week. There has been talk of a butter shortage but that is not likely. Price will move to a level at which it will curtail demand. There are some reports that retail demand has slowed but not enough to back up supply. Not much movement is expected Friday.
