OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 2 to 3 Lower |
MILK:
The selling pressure on milk futures ahead of spot trading was expected due to the negative close Wednesday. However, it was surprising the pressure remained after spot trading took place. Traders continue to do short-term trades rather than long-term positions, creating added volatility. There seems to be support under the market with little potential for price weakness. However, one can never be certain of the price potential at any time of year. Milk output is lower than a year ago but beginning to stabilize as temperatures cool seasonally. Milk production is not expected to grow by leaps and bounds but may increase slowly. It is expected to remain below year-earlier levels. The USDA will release the July Dairy Products report Friday afternoon, indicating the production of dairy products for the month.
CHEESE:
Steady cheese prices Thursday were insufficient to generate aggressive buying interest in Class III futures. Traders are cautious over upside price potential even though buyers are generally more aggressive at this time of year.
BUTTER:
The butter price may increase Friday as buyers want to take advantage of the recent price decline. The pattern has been that once buyers step back into the market, the price moves to a new high before slipping back again. It will be interesting to see whether that pattern will hold this time.
