OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 4 to 7 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 7 to 10 Lower |
MILK:
Milk futures may trade mixed ahead of spot trading. The mixed cheese prices on Thursday did not provide any direction for traders. There is a potential for milk production to slow as the summer progresses, but the extent of the decrease is uncertain. Some long-range weather forecasts are expecting hot weather that will impact milk production. Farms have made great strides in the ability to keep cows cool, minimizing the impact of hot weather. The greater impact might be on components which will impact cheese yields and butterfat availability. Fluid milk demand is flat to slightly lower as schools are closed for the summer. More milk is available for manufacturing but is not burdensome.
CHEESE:
The block/barrel spread continues to remain inverted and rather wide. Barrel cheese is in a tighter supply position and may remain that way for a time. Lower American cheese production as reported on the Dairy Products report and inventory about the same as last year provides the potential for higher prices if demand improves.
BUTTER:
Butter could find buying interest Friday as the past two days of lower prices may increase the buying interest on the spot market. The cream supply is beginning to tighten as milk is not being standardized for schools and other Class II production is increasing such as ice cream. Manufacturing plants will reduce schedules having already prepared by building inventory.
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