OPENING CALLS:
| Class III Milk Futures: | 3 to 8 Higher |
| Class IV Milk Futures: | 10 to 30 Higher |
| Butter Futures: | 2 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 5 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Milk futures certainly found support in recent weeks as underlying cash came to life. Class III futures moved to the highest level since early September, with Class IV futures at the highest level since early August. This has been an incredible counter-seasonal move and one that was completely unexpected. The current fundamentals do not suggest a change in trend of this magnitude. Milk production remains strong, with dairy product production outpacing that of a year ago. We hope demand will improve significantly, but there has been no solid evidence of that.
CHEESE:
Even though the cheese price has increased, it remains relatively low and is still a good buy for those who need it to fill orders and build inventory. There may be a level at which the market will plateau, but it is uncertain when buyers will be satisfied. Cheese is readily available for demand.
BUTTER:
The high volume of unfilled bids remaining in the spot market at the close of trading on Thursday suggests further price strength Friday. Buyers seem to be leapfrogging over each other to obtain supplies, creating a buying frenzy that is bringing more buyers in from the sidelines.
