Friday Morning Dairy Market Update - Milk Futures May Settle Back Into the Weekend

OPENING CALLS:

Class III Milk Futures:	3 to 6 Higher
Class IV Milk Futures:	5 to 10 Higher
Butter Futures:	1 to 2 Higher

OUTSIDE MARKET OPENING CALLS:

Corn Futures:	Mixed
Soybean Futures:	1 to 2 Lower
Soybean Meal Futures:	Steady to $1 Higher
Wheat Futures:	Mixed

MILK:

Milk futures have made some nice gains, and hopefully, it will continue. It is possible that seasonal buying will increase after being delayed. The problem is that buyers have been purchasing supplies at lower prices. This may limit the need to purchase later, as inventory may be sufficient. The August Cold Storage report did show American cheese stocks increasing from July. Cheese stocks historically decline at this time of year. Increasing milk production will increase cheese output.

CHEESE:

The block cheese price has increased for four consecutive days, rising 15 cents. Buyers may be reaching a threshold soon and may not be interested in supporting the market further. Cheese is available, and cheese production remains steady.

BUTTER:

The butter price may be carving out a sideways trading range with buyers and sellers comfortable at the current level. Increasing cream supply and churning schedules should keep a sufficient supply available to the market. The butterfat content in milk remains higher than a year ago.