OPENING CALLS:
| Class III Milk Futures: | 10 to 15 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | Mixed |
MILK:
Milk futures have come alive this week with underlying cash providing support. Concern remains over upside price potential of cheese and butter, but recent strength suggests higher prices may be possible. Milk production is not overwhelming the market, but remains sufficient for demand. The September Milk Production report will be released on Monday, providing not only an idea of production, but cow numbers and production per cow. This may determine whether milk prices will hold stronger next year. Class III futures traded higher overnight with good volume. Traders seem confident cheese prices may increase. There was a trade in March Class IV futures at 3 cents lower. It is unusual to see trading activity in Class IV futures overnight.
CHEESE:
The unfilled bids at the close of spot trading Thursday suggest cheese prices may increase further Friday. Buyers have turned more aggressive, but that may be limited unless demand improves, reducing inventory at an increased pace. The increased demand for barrels has pushed the barrel price above blocks again.
BUTTER:
The butter price has increased this week but the volume of loads that have been traded will go a long way to satisfy demand. This may leave the upside price potential limited. The strong churning pace and plentiful cream supply is keeping plants busy and running at capacity.
