OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 12 to 15 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 8 to 12 Higher |
MILK:
There was a wild trade in December Class III futures overnight as a result of either a stop being hit or a market order being placed. It was not likely a stop being hit as there had been no previous trades with the only trade being 43 cents higher. It was a market order being placed in a market where market orders should not be placed when there is very little activity. This trade is not representative of the market. Traders will be cautious due to the weakness of cheese prices last week.
CHEESE:
Cheese prices should have declined to the level at which buyers could step back up to the plate and purchase more aggressively. Time of year would be right for that to take place, but that will not be the only consideration. Supply and demand will dictate strength or weakness. USDA will release the July Cold Storage report Monday, which will provide an idea of demand during the month. Inventory should show a decline from June, but there is no guarantee that will be the case. Cheese production was strong during the month.
BUTTER:
Price was trying to move sideways to higher, but has recently shown weakness again, which may result in a resumption of the downtrend. Inventory in July is expected to remain substantially higher than a year ago despite strong exports.
