OPENING CALLS:
| Class III Milk Futures: | Steady to 8 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 4 to 7 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Milk futures took another beating again Tuesday as there is little underlying strength in the cash market. There is strong demand for dairy products, but there is sufficient supply to meet that demand. Summer weather so far has not had much overall impact on milk production with limited adverse impact expected as we move through the month of August. Longer-term impact may be felt later in the year as feed inventory and quality is assessed and feed prices are realized. Grain prices have been somewhat stable with soybean meal testing the lows. The larger concern will be the price and availability of hay and forage in some areas. That may have a larger impact on milk production moving through the next nine months. USDA will release the July Federal Order class prices Wednesday as well as the June Dairy Products report.
CHEESE:
Barrels have not been able to find price support. Buyers have not been aggressive, but have been able to purchase what they need. Sellers continue to move product and offer lower prices during spot trading rather than hold back in anticipation of higher prices. The price weakness seems to be overdone, but until selling interest subsides, there will be limited upside potential.
BUTTER:
Any price increase has been short-lived much of the year and that pattern continues. The overall price trend remains down. Some plants have reduced production, but so far production continues to satisfy demand with a continued growth of inventory. That trend looks to continue for a while.
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