OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 6 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 12 to 16 Higher |
MILK:
Milk futures have been unable to find a bottom as underlying cash has not provided any solid reason to trend higher. The bearish attitude that has gripped the market will be difficult to overcome. Continued strong milk production keeps bottlers and manufacturers well supplied with milk. If the current trend continues, milk production will be very strong through the end of the year. However, there may be some impact from drought conditions in some areas as high feed prices and low feed supplies may impact milk output. It is difficult to determine just how much impact that may have on overall production. It is also still too early to determine the how much corn and corn silage will be available in those areas. We know that hay production was been impacted greatly in areas of substantial to severe drought. Forage in those areas will have a very high price tag. Mixed trading is expected until spot trading, but even if cheese prices increase, futures may not move much due to the bearish attitude.
CHEESE:
There needs to be a catalyst to move cheese prices higher, but that has been absent from the market. Most cheese plants are running at higher levels than anticipated during this time of year providing plenty of cheese to the market. However, according to the latest Cold Storage report demand has been strong with inventory declining during the month of June. That could eventually tighten supply and increase prices.
BUTTER:
Price continues to slowly erode even though export demand has been strong. Some plants have reduced churning in order to balance supply with demand, but that has not been able to provide much price support. Unless greater demand comes from both retail and the food service industry. Price may move sideways to lower.
