OPENING CALLS:
| Class III Milk Futures: | 8 to 12 Higher |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | 4 to 7 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 1 to 3 Lower |
MILK:
The strength of Class III milk futures on Thursday certainly was good to see after a time of consistently lower prices. This may continue today as traders may liquidate more of their sold contracts. The strength of dry whey has provided significant support to Class III futures. Milk production seems to have reached its low but has not rebounded as much as usual for this time of year. Milk production will improve as time progresses, but the rebound might be limited due to lower cow numbers and a tight heifer supply. The USDA will release the World Agricultural Supply and Demand report Friday and will show their estimates of milk production, milk prices and dairy product prices for this year and next year.
CHEESE:
It is uncertain whether cheese prices may be low enough to increase the buying interest of end users. Buyers are buying on an as-needed basis rather than building inventory. Current cheese demand is not as robust and usual for this time of year. Retail demand has been steady to slightly improved while food service demand has been lighter than usual.
BUTTER:
The butter price is expected to remain entrenched in a sideways trading range in the near term. The current level of inventory would suggest the prices could dip lower before the end of the year to stimulate greater demand.
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