OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 8 to 10 Lower |
MILK:
All eyes will be on block cheese Tuesday during spot trading to see whether the decline is temporary due to limited buyers showing up Monday or if price is now in a retracement again. Traders will be cautious in picking a price direction prior to spot trading. The question is whether milk moving to school systems will be enough to reduce manufacturing and tighten supply. USDA released a re-evaluation of the Thrifty Food Plan Monday, which calculates the Supplemental Nutrition Assistance Program (SNAP). The result was that the average SNAP benefits will increase $36.24 per person per month for the Fiscal Year 2022 which begins Oct. 1, 2021.
CHEESE:
Cheese prices have upside potential seasonally, but they may not have much upside potential fundamentally unless demand improves and supply begins to tighten. Buyers generally are more aggressive this time of year as they look ahead to upcoming demand for fall and the holidays. However, with sufficient supply, the aggressive buying pattern may not unfold as long as production keeps pace with demand.
BUTTER:
Butter inventory has yet to see a decrease, but that is expected to show on the July Cold Storage report on Aug. 23. Buyers have been able to increase ownership and fill orders without having to be aggressive. Much of the purchasing has been on an as-needed basis. The current pattern is expected to continue.
