OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 4 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 5 to 6 Lower |
MILK:
The decline in cheese prices on Thursday was a surprise and will increase the caution of traders. It seemed the maket had been finding support with spot prices trading in a tight range. However, Thursday's decline indicates support remains elusive. Continued strong milk output and steady cheese production will keep the market supplied. Schools are closing and will close over the next few weeks, with more milk moving to manufacturing. Milk production provides no indication of slowing anytime soon. Trading activity may be light ahead of spot trading as traders are uncertain whether buyers will step up in the spot market to take advantage of the weakness in cheese or if further weakness may take place if buyers hold back.
CHEESE:
Cheese supplies are sufficient for demand, with increasing milk availability keeping manufacturing strong. Plants may move cheese to the spot market as quickly as possible to keep inventory from building.
BUTTER:
Traders will be cautious over whether the butter price has much further upside potential in the near term. The market has yet to break out of an overall downtrend despite the rebound from the lows two weeks ago. Strong butter production keeps the supply readily available to the market and spot trading activity significant.
