OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 2 Lower |
| Soybean Futures: | 2 to 5 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 3 to 7 Lower |
MILK:
Class III milk futures continue to erode as the inability of cheese prices to move higher during this time of year dims the outlook for price potential. Milk production has remained stronger than expected throughout the summer and is anticipated to remain strong throughout the rest of the year. Higher feed prices will have an impact, but they may not have quite the impact as predicted as farms make adjustments and continue to push production. USDA will release the July Agricultural Price report Tuesday afternoon. This report will provide the average prices used in calculating income over feed and any payment that will be forthcoming for those who took part in the Dairy Margin Coverage program.
CHEESE:
Cheese buyers remain confident they will be able to continue to purchase supply without needing to chase the market. Manufacturers continue to offer product on the spot market in order to limit inventory build. Even though milk for manufacturing has declined due to greater demand for fluid, the production of other dairy products is sufficient to leave supplies readily available.
BUTTER:
Reduced butter production and increased demand is providing some support to the market. However, supply is not tight nor is it expected to become tight through the rest of the year. Buyers have been steadily purchasing supply as they prepare for upcoming demand. This has left them less aggressive on the spot market. Supply is readily available through regular channels.
