OPENING CALLS:
| Class III Milk Futures: | 4 to 10 Lower |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 3 to 5 Lower |
MILK:
Class III milk futures took a beating Thursday with some follow-through selling overnight. The weakness of underlying cash may continue Friday as buyers in the cash market may hold back. The July Milk Production report was somewhat bearish, which may have influenced trading Thursday. USDA will release the July Cold Storage report Friday, which may also provide some influence on the market next week. Market fundamentals have seen little change this week and continue to follow seasonal lines. Increased milk volumes are moving to deficit areas to satisfy the demand for school accounts. Spot milk prices are increasing as the supply has tightened.
CHEESE:
Traders will focus on barrel trading Friday as the low bids on Thursday are a concern. Buyers showed no interest in purchasing barrels except about 20 cents lower. It is unusual to have a large gap between bids and the current market, which could suggest buyers may not be interested until that level. Buyers may hold back today to see how aggressive sellers might be.
BUTTER:
There continues to be a substantial volume of loads traded in the spot market. There is no shortage of butter but demand is sufficient to hold prices at the current level. The cream supply continues to tighten but there are adequate supplies for churning. Cream prices have been increasing as demand remains strong. The cold storage report is expected to show July butter inventory higher than a year ago.
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