OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 5 to 8 Higher |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 5 to 8 Lower |
MILK:
Reports from farms indicate cows have been holding milk production well so far, but it is anticipated output will decrease soon as hot weather continues to linger. Greater concern is developing over dryness in many areas and the impact it will have on feed prices. That is not having an impact on milk production, nor will it for a period of time. Strong demand continues for dairy cattle and replacement heifers as farms want to keep stalls full. USDA will release their estimates for milk production, milk prices and product prices on the World Agricultural Supply and Demand report Thursday at 11:00 a.m. CT. It will also provide information on the grain markets, which could have a significant impact on futures prices.
CHEESE:
The divergence of cheese prices could continue again Thursday. Buyers were more aggressive in barrels Wednesday due to strong demand for barrel cheese. Supply is reported as adequate, but buyers need to fill orders and price is reasonable. Demand is good for blocks with supply readily available. This keeps buyers less aggressive and yet able to purchase what they need.
BUTTER:
Butter is expected to remain in a sideways range for a longer period of time. The market is balanced leaving buyers and sellers accomplishing business at reasonable prices without difficulty. Traders do not anticipate much upside price potential for the rest of the year based on what futures contracts are showing.
