OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 1 to 2 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Mixed |
MILK:
Class III milk futures closed strong on Thursday with follow-through trade continuing overnight. It is uncertain whether traders are thinking cheese prices will turn higher or if the overnight activity was short covering. There was good volume overnight, which could indicate more than just short covering. Overall, not much is expected one way or the other for price movement. The September Cold Storage report was scheduled to be released today, but it will not be released due to the government shutdown.
CHEESE:
Cheese prices are expected to remain choppy as buyers and sellers take care of business in the cash market. The trading is narrowing as there is a balance in supply and demand. Increased cheese production is limiting the decrease in inventory, leaving the market with sufficient supply.
BUTTER:
The butter price could see further gains today if the unfilled bids that remained at the close of spot trading on Thursday are raised. However, the buyers may wait and hold their bids at lower prices, knowing that manufacturers will want to move supplies rather than build inventory. The price could fall to a new low again in the near term.
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