OPENING CALLS:
| Class III Milk Futures: | Steady to 10 Higher |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 8 to 12 Lower |
| Soybean Meal Futures: | $3 to $5 Lower |
| Wheat Futures: | Mixed |
MILK:
Milk production in June up 2.9% was a bit shy of the estimate, which should be somewhat friendly to the market. Cold storage was friendly as cheese stocks showed a decline, even though there were some earlier reports indicating inventory was increasing. This may not provide a lot of support as these reports generally are not market-movers. Spot trading will provide direction. Even though milk production was not as high as anticipated, there remains a lot of milk in the country, easily satisfying the needs of bottlers and manufacturers. Milk futures will have a difficult time regaining what was recently lost unless fundamentals change in the near future.
CHEESE:
The decrease of cheese inventory on the Cold Storage report should be positive to the market, even though it is not unusual for that to happen during June. However, high cheese production due to increased milk production indicates strong demand. This could play a significant part in price potential through the end of the year.
BUTTER:
Butter inventory increased, but the increase was slight. The bearish aspect of the Cold Storage report was that butter stocks are 14% above a year ago. Inventory should begin to decline, but that may be at a slower pace than usual as well. There could be further pressure on cash Friday during spot trading.
