OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 7 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 10 to 13 Lower |
MILK:
It appears milk futures may not move anywhere in the near term. Underlying cash seems to be content remaining in a range. That is not all that bad as it at least is holding a floor. Milk production has come off its peak as hot weather has had an impact, but the weather forecast is for more moderate temperatures in some areas of the country, along with the potential of better rain chances. However, that is not a general forecast for all the country with some areas facing some significant to severe drought conditions. The market is not speculating on what the outcome of the summer will be. Traders are not following closely with the corn futures as they did in May. The focus is on current supply and demand and not on the what-ifs of the market. Class III milk futures have been somewhat sideways for the past two weeks.
CHEESE:
The expectation is for cheese prices to continue to chop around as buyers and sellers do business each day. There has been some interest in building inventory for later demand. Buyers have not had to aggressively bid for supply as there has been sufficient available to the market. The more they can increase ownership now, the less aggressive they will need to be later in the year.
BUTTER:
Butter is in a similar posture as cheese with the exception of it being at a higher price. Increasing restaurant demand has been able to move price to the current range it has been in and will keep it there as demand will need to be met and the supply line maintained. Price is expected to remain sideways.
