OPENING CALLS:
| Class III Milk Futures: | 4 to 8 higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
With the current milk supply balanced with demand, there seems to be limited upside price potential for milk prices. Demand will need to improve to realize higher prices as buyers of dairy products may turn more aggressive. This time of year generally increases buying interest and an increase of prices, but sufficient supply has kept a strong uptrend from developing. Hot weather is behind us for the year as we move toward fall and winter. Grain prices seem to have stabilized until there is a better idea of yields and supply. If current milk prices do not improve, cow numbers likely will decline, and milk production will remain below a year ago through the rest of this year.
CHEESE:
Block cheese price had a nice rebound from the early pressure on spot price Thursday. This may set the stage for more aggressive buying Friday as buyers may want to increase their ownership of supply. However, any buying may be limited as the current supply is sufficient for demand.
BUTTER:
It is uncertain how much higher butter price may be able to move. International demand remains substantially below a year ago. Retail and food service demand has been steady. Buyers have been able to pick up supply without having to be aggressive with their purchases. Volume on the spot market remains strong with sellers willing to move supply.
