OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Higher |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 6 to 8 Higher |
MILK:
There is no shortage of milk, keeping both bottling and manufacturing supplied. Milk production is steady to slowly improving and hopefully demand will improve along with it. Cow numbers seem to be holding as farms want to maintain production, even though cull cow prices remain high. The large push to cull lower-producing cows and replace them with heifers may have run its course for the time being with just normal culling taking place and the focus on improving production. Walmart announced it is investing $350 million to build an owned and operated milk processing facility in Valdosta, Georgia. Groundbreaking will take place later this year and create nearly 400 jobs according to reports. The facility will be bottling milk to supply about 750 Walmart and Sam's Club stores in the Southeast.
CHEESE:
Traders will be cautious over spot cheese trading Friday as price increases generally have been short-lived, leaving barrels susceptible to selling interest. However, buyers may be a bit more aggressive for blocks as they might need to increase ownership for end-of-year demand.
BUTTER:
The weakness of butter may send buyers to the sidelines or placing lower bids and then waiting for price to come to them. Sellers may not be overly aggressive and both production and inventory are being used to meet demand. But it is difficult to say where the price balance should be.
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