OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 5 Higher |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 12 to 14 Higher |
MILK:
The large increase in Class IV milk futures on Thursday did not carry over into overnight trade. Class IV contracts generally do not trade overnight as bids and offers are far apart. Higher futures are expected as trading activity increases during the day. Class III traders will take a wait-and-see attitude before making any strong commitments. Beef cattle prices have been declining, which has reduced calf prices and some of the extra income from those calves. However, even with lower prices, beef-on-day calves will continue to be an integral part of the dairy operation. Dairy cattle slaughter is not expected to increase significantly anytime soon.
CHEESE:
The block cheese price has had a nice bounce this week, but the concern is whether it will hold. Traders have been cautious in Class III futures as futures remain close to what they were a week ago. Demand is good, and cheese production is steady.
BUTTER:
There have been a lot of loads of butter traded on the spot market so far this week. Immediate orders are being filled without difficulty, and inventory is being added to in preparation for fall and holiday demand. Cream supplies are not abundant, but sufficient to maintain an active churning schedule. The price may remain choppy.
