OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 5 to 6 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | Steady to 1 Lower |
MILK:
If the pattern remains intact, milk futures could rebound Friday as traders might cover their sold positions of the past two days to take some profits ahead of the weekend. There is little indication of a change in fundamentals that would result in the market trending higher. The beef-on-dairy calf market is strong and will remain that way for a time. This will continue to limit culling unless the milk price declines further, with lower-producing cows being culled to reduce feed expenses. It appears strong milk output will continue to provide for bottling and manufacturing needs and then some, keeping milk prices low.
CHEESE:
The barrel market continues to see little interest in the spot market, with business being done in the country. The steady barrel price does not influence the block price. The continued weakness of blocks will result in the barrel price adjusting lower. The current cheese production is outpacing demand.
BUTTER:
The price has not found a bottom, and lower prices are likely to develop. Manufacturers are putting some butter into storage but are limiting the amount moving to inventory by selling it on the spot market. A high volume of loads continues to trade on the daily spot market as sellers are moving supplies, even if lower offers are needed to entice buyers.
