OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 4 to 5 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | Mixed |
MILK:
Traders will be hesitant today to take a position ahead of spot trading. The close of spot cheese on Thursday would suggest weakness could carry through today. This may keep pressure on Class III milk futures with further selling possible. Milk futures did not follow the cash market lower as much as they should have in correlation to cash prices. However, further weakness could trigger heavier selling. The September contract is mostly priced and will show limited price movement until the Federal Order class prices are announced. The September contract remains open to the full movement of the underlying cash.
CHEESE:
The uncovered offers in the cash cheese market on Thursday suggest further weakness today. Buyers may hold back due to the aggressive selling interest in blocks. Sellers may try to move more cheese at the best price they can before further weakness develops. They may leapfrog over each other, resulting in continued weakness.
BUTTER:
The butter price could go either way. The price is low enough that buying interest could increase as preparation is made for later demand. However, butter production continues, and supply remains sufficient for demand. Even with greater buying interest, the upside potential may be limited.
