OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 1 to 2 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 6 to 9 Higher |
MILK:
There seems to be little reason for milk futures to increase in the near-term. Underlying cash provides little support for higher prices with buyers comfortable with the current supply. Weather is good for cow comfort, which should improve milk production. The second hurricane in the past two weeks in Florida, along with the effect it has had on the South, will impact milk movement and consumer demand in the region for a time. Demand for milk and dairy products is good, but not good enough. Demand is expected to improve over the next two months but may not generate strong buying of dairy products on the spot market.
CHEESE:
The stability of spot cheese prices on Wednesday provided no direction for spot trading Thursday. Prices should be low enough to generate increased buyer interest, but with sufficient supply through the rest of the year, buyers may remain lethargic.
BUTTER:
Sellers have supplies they want to move and continue to offer them on the spot market. The large volume of butter sold on Wednesday keeps buyers supplied without having to chase the market higher. Inventory is expected to remain above a year ago through the end of the year due to strong churning activity.
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