OPENING CALLS
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 2 to 5 Lower |
| Soybean Meal Futures: | Steady to $1 Higher |
| Wheat Futures: | 6 to 9 Higher |
MILK:
The September contract is being priced but remains open for substantial volatility if underlying cash moves significantly. However, underlying cash does not seem to have much potential for large price swings. Milk supply is sufficient for demand even with more milk moving to school accounts. Milk receipts at plants are declining seasonally. This should provide some support to the market, but it may not be enough to cause any concern for buyers. Trade is expected to be light with limited price movement prior to spot trading.
CHEESE:
Cheese prices are no better than they were early this year. There has been some volatility, but overall, prices have remained in a range. This is a large contrast to the volatility of last year. Current fundamentals suggest there may be limited upside potential for cheese prices through the rest of the year.
BUTTER:
Price may be trying to stairstep higher, but a higher trend may be slow to unfold. Supply is plentiful. Some plants have been limiting production by selling some cream back to the market rather than churn in order to limit inventory growth. However, demand should improve as the year progresses, which will pull inventory lower.
