OPENING CALLS:
| Class III Milk Futures: | 3 to 6 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 13 to 15 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 4 to 5 Lower |
MILK:
Class III milk futures continue to show weakness. In overnight trade, the October contract fell to $16.02 before regaining some of the loss. Support remains elusive. The outlook does not look positive as seasonal strength has not developed. Milk production is sufficient for bottling and manufacturing needs with no concern over supplies through the end of the year. The World Agricultural Supply and Demand report will be released this morning. The report will show expectations for grain production, ending stocks, and estimated prices. The report will also contain the estimates for milk production, milk prices, and dairy product prices for this year and next year. The report is not a market-mover but is used for projecting price potential.
CHEESE:
The fall of the barrel cheese price on Thursday did not have any impact on milk prices, as barrels are not used in the milk price calculation. However, it does indicate the weakness prevalent in the market and supports the weakness seen in blocks.
BUTTER:
The butter price is just 7 cents above the low of this year.
There is nothing to indicate the price will not decline to that level before it will be low enough to generate more aggressive buying interest. Offers on the daily spot market remain large, keeping the market bearish with limited upside potential.
