OPENING CALLS:
| Class III Milk Futures: | 5 to 112 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 6 to 8 Higher |
MILK:
The strength in milk futures Thursday sets the stage for further strength Friday ahead of spot trading. Some traders were to liquidate sold positions due to the September Class III contract being up the limit for the rest of the day after spot trading. Those positions were liquidated overnight, pushing futures higher. There may be some hesitation over the potential for further strength in cheese as no unfilled bids remained at the close of spot trading on Thursday. If the current milk futures prices hold, it will be welcomed after a period of low prices.
CHEESE:
Cheese buyers have stepped up to purchase for the potential stronger demand. Buyers had been complacent for a time, leaving the market in a sideways pattern, but that seems to have ended with the price increases bringing more buyers in from the sideline. The upside price potential is uncertain but the increase follows a seasonal pattern. It is difficult to anticipate spot prices today as no unfilled bids or uncovered offers remained at the close.
BUTTER:
The record amount of butter traded on the spot market Thursday indicated a sufficient supply of butter, it also indicated strong demand. It was surprising the price only gained 2.50 cents with Thursday's strong buying interest. Sellers will hold back when there is strong buying interest as they wait to see how aggressive the buyers want to be. However, the sellers were willing to move the butter to the market rather than hold for higher prices.
