OPENING CALLS:
| Class III Milk Futures: | 8 to 15 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 5 to 8 Higher |
| Soybean Meal Futures: | $1 to $3 Higher |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Class III futures traded higher after the markets were settled on Thursday, indicating further strength in overnight trading. The November and December contracts posted double-digit gains, moving December above $21.00 again. Underlying cash needs to find sold support during spot trading today or futures could settle back into the weekend. The USDA will release the World Agricultural Supply and Demand report today. The report provides USDA's estimates for milk production, milk prices and dairy product prices for this year and next.
CHEESE:
Barrel cheese has been unable to find support. The price slipped to the lowest level since July 15. The price should be low enough to generate buying interest, but sellers want to move supply. There are reports that barrels are in demand and supply has tightened, but buyers seem comfortable with their current supplies. Buyers of blocks may turn more aggressive as they take advantage of the current price.
BUTTER:
The butter price has been unable to find support. Buyers have increased purchases, but sellers are aggressively moving supply. Churning is active with cream supply higher than usual for this time of year. The strong output keeps manufacturers wanting to move supply rather than let it build inventory.
