OPENING CALLS:
| Class III Milk Futures: | Steady to 8 Higher |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $3 to $5 Lower |
| Wheat Futures: | 4 to 8 Lower |
MILK:
Milk futures continue to move higher supported to stronger spot prices. There is uncertainty as the how much strength will continue to be seen in the market. Milk supply is sufficient and dairy products are available to meet demand. There does not seem to be any slowing of milk production even though there are substantial areas of drought in the country. The desire is to push milk production and the prospect for higher milk price will keep that desire strong. Feed prices will be higher as it will be more expensive to haul in the feed from a distance, but adjustments will be made, and milk will be produced. September Class III futures joined October, November and December contracts above $18.00 Monday.
CHEESE:
The trend is up and this has increased the buying interest in the spot market. Those what had been purchasing on an as-needed basis are stepping up to purchase for later demand as well as purchasing before prices move too high. It is uncertain just how far this will carry the market, but it may move blocks above $1.80 and back to the level it was in early May.
BUTTER:
Butter is trying to keep pace with cheese. The same holds true for butter as buyers may want to increase ownership for later demand. Exports continue to remain very strong, which will limit inventory growth. Tightening cream supply should slow output for a period of time. This may support price.
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