OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 3 to 6 Lower |
| Soybean Meal Futures: | Steady to $2 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
There was finally some positive trade to the market Wednesday. Even though support was limited, it did provide some hope for a possible bottom in the market. However, it will take more than a minor increase of cheese price to turn the trend up. There is a greater impact being felt from the continued drought, which could result in reduced milk production. However, that may take some time to impact milk supply enough in order to tighten the market. Milk is beginning to move to the Southeast as demand for fluid milk for school accounts is increasing. This will reduce the amount of milk available for manufacturing. This could cause buyers to step back into the spot market more aggressively as they look ahead to upcoming demand.
CHEESE:
Cheese production was strong in June, according to the Dairy Products report released Wednesday, but inventory declined for the month. This indicates strong demand, which may increase as the second half of the year progresses. Cheese prices are low and should entice buyers to take advantage of these prices and increase ownership for fall and holiday demand.
BUTTER:
Price moved to a new low for the current trend, pushing price back to the lowest level since Feb. 26. With inventory significantly higher than a year ago, it is difficult to anticipate much upside potential in the foreseeable future. However, downside should be limited as demand should improve through the end of the year.
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