OPENING CALLS:
| Class III Milk Futures: | 2 to 6 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $0.50 to $1 Higher |
| Wheat Futures: | 5 to 6 Lower |
MILK:
Class III futures may remain choppy with limited upside potential due to the recent weakness of cheese prices. Futures have moved back to the lows, but uncertainty over price strength will keep traders cautious. The rebound in Class IV futures over the past three days will need to be supported by further strength in butter and nonfat dry milk or prices will fall back. Trading activity may be mixed ahead of spot trading. The USDA will release its June Agricultural Price report Friday. It will contain most of the prices used in calculating income over feed for the Dairy Margin Coverage program. The average soybean meal price will not be released until Monday.
CHEESE:
Spot cheese prices are expected to see further weakness as buyers hold back. They see sufficient supplies available and little need to purchase and pay for storage. Buying may continue on an as-needed basis.
BUTTER:
Either the 9-cent weakness in butter earlier in the week was an aberration or the strength on Thursday, with the price increasing by 9 cents, was an aberration. The market Friday may provide a clearer indication of which it was. There continues to be a large volume of unfilled bids at the close of spot trading each day. The market may have limited upside potential unless the selling interest subsides.
