OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 5 Higher |
| Soybean Futures: | 25 to 35 Higher |
| Soybean Meal Futures: | $5 to $7 Higher |
| Wheat Futures: | 5 to 8 Higher |
MILK:
It certainly was not positive for the market Tuesday even though cheese prices increased and butter remained steady. The pressure came from dry whey and nonfat dry milk. Milk futures were under pressure as traders anticipate the increase of cash cheese prices may be short-lived as any price increase has been since the beginning of the year. However, that pattern may not continue, and this may be the time that prices may slowly increase as we have entered the second half of the year. Milk supply is sufficient for both manufacturing and bottling needs, leaving little concern over any tightness of supply. Grain prices falling again will assure continued strong milk production.
CHEESE:
Cheese remains available to the market, but what has been coming to the spot market recently is being readily purchased. Higher prices may bring more to the market as plants want to move product rather than build inventory. The cheese is out there, but there is some difficulty moving it due to a shortage of available trucks.
BUTTER:
Price shows little direction as supply and demand seem to be balanced for the time being. Churns remain active as cream supply is readily available. Inventory is slowly increasing. Demand from the food service industry is steady to slowly improving. Price is expected to remain sideways for a period of time.
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