OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 1 to 2 Lower |
MILK:
The divergence of Class III futures on Thursday with deferred contracts showing significant strength was likely a market correction. Later contracts were under pressure when cheese prices increased, and nearby contracts showed strength. The market needed to move back in line with the usual correlation futures maintained through the end of the year. Futures did not change much overnight on limited trading activity. Traders will be cautious before spot trading but may maintain a negative bias due to Thursday's cheese price weakness.
CHEESE:
Sellers may remain aggressive Friday as the weakness of cheese prices on Thursday may result in increased selling interest as they want to take advantage of some of the recent price gains to move product. Immediate orders may have been filled with no further buying interest at current prices. Steady to higher cheese production will keep sufficient supply available to the market.
BUTTER:
Butter may have reached a high as buyers may not be willing to pay more for butter than the current price. There is no shortage of butter and buyers are unwilling to build inventory at this time of year. They will continue to purchase butter, when necessary, rather than pay for storage. Churning remains active.
