OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 5 to 7 Lower |
MILK:
Class III milk futures nearly fell to the lows of earlier in the week. This followed the pattern of the past few months as price increases are short-lived. There is a sufficient supply of milk and dairy products to meet current demand. Fundamentals are not expected to change much during the rest of this month, which may keep milk prices low and later futures contracts slipping lower as traders reduce the premium in the market. Cows are doing well overall with milk components slowly improving. Culling has been steady with farmers holding onto cows. Cull cow prices have been declining, which may also have some impact on the level of culling. USDA will release the World Agricultural Supply and Demand report Friday, which will provide estimates of milk production for this year and next year. Milk price and dairy product price estimates will also be released.
CHEESE:
The weakness of cheese prices Thursday may result in buyers holding back Friday as they anticipate sellers may want to move supply. Prices are expected to chop around through the rest of the year. Most holiday demand has been filled with regular demand or fill-in orders impacting the market. Some rebuilding of aging programs is taking place.
BUTTER:
Buyers and sellers seem to be comfortable at the current price. Upside potential is expected to be limited with current demand likely to support price. Butter futures hold a discount to cash moving through the first part of next year as traders anticipate further weakness
