OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Traders decided the strong gains in Class III futures Thursday may have been overdone. Overnight trading has been active with prices 5 to 25 cents lower. The choppy nature of the market keeps traders cautious and only taking short-term positions to make a quick profit if they guess correctly. The July contract is mostly priced and will move relative to the weekly AMS prices released on Wednesdays. USDA will release the June Milk Production report Tuesday. Spot trading will influence market direction Friday.
CHEESE:
The recent activity in spot cheese may indicate sellers may be a bit more aggressive Friday. Buyers have not been concerned about supply, remaining less aggressive in the market. The demand for fresh cheese may improve as buyers prepare for increased demand in the fall and the holidays. Packagers and recutters may increase buying in September.
BUTTER:
Buyers purchased a significant volume of butter Thursday during spot trading. They may be less aggressive Friday as they wait to see if sellers will be willing to move more supply. The sufficient supply leaves buyers comfortable, limiting their purchases and waiting for lower prices. The market is expected to remain choppy in the near term.
