OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | Mixed |
MILK:
Milk futures made a nice rebound this week and have been able to hold those gains. Seasonal demand may have increased the buying interest in the underlying cash, providing some hope for increases in milk prices. However, traders remain cautious over further upside potential as prices historically peak in September or October. There is sufficient milk available for both bottling and manufacturing. Milk output has surpassed the low point of the year and should steadily improve.
CHEESE:
The inability of the block cheese price to show follow-through strength on Thursday keeps some negativity in the market, indicating the upside price potential may be limited. However, the barrel price holding steady may indicate there is support under the market, which may limit the downside weakness. Cheese prices may remain choppy.
BUTTER:
Buyers continue to purchase supplies without having to chase the price higher. Manufacturers continue to move butter to the spot market in an attempt to limit any further increase in inventory. Churning has increased as cream supplies increase. The price is expected to move back to the low again.
