OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 1 to 2 Lower |
MILK:
Milk futures continue to be supported by the strength of underlying cash. Cheese prices have been more volatile than butter. Class IV futures continue to hold at higher prices with most contracts higher than Class III. The downside price potential for both cash and futures may be limited. This is the time of year when buyers are generally more aggressive as they look ahead to and prepare for increased demand. USDA will release the July Agricultural Prices report this afternoon. Most of the prices used in calculating income over feed for the Dairy Margin Coverage program will be contained in the report. The average soybean meal price is not on that report and may not be released until next week. Income over feed is expected to be around $12.00 due to the increased All-milk price and lower feed prices. The markets will be closed on Monday in observance of Labor Day and will reopen Monday night.
CHEESE:
The inability of block cheese to hold the gains during spot trading on Thursday will leave traders cautious today. However, prices are not expected to weaken much, if at all. Buyers are willing to buy on weakness rather than holding back anticipating further weakness.
BUTTER:
The butter price will continue to chop around but remain supported. The price is expected to reach the high of 2022 but may fall short of a record high this year. Both international and domestic demand is improving. Inventory is supplementing fresh production to meet demand.
