OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | 2 to 5 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 3 to 5 Higher |
MILK:
Pressure on Class III milk futures continued Tuesday in response to weakness of block cheese again. Any long-term support remains elusive as milk supply is sufficient for both bottling and manufacturing. More milk moving to deficit areas to supply school pipelines has had some impact on manufacturing. It has allowed for some breathing room for milk plants after months of running at or near capacity. The July Milk Production report will be released Thursday and is expected to show a significant increase of milk production over a year ago.
CHEESE:
Overall buying has been a little more aggressive for cheese as the industry looks ahead to fall and holiday demand. However, any weakness of price causes buyers to step back to see how aggressive sellers will be. This will provide the opportunity to purchase product at a lower price. Once the selling pressure subsides, buyers will again step back in. The weakness of blocks over the past two days should increase the interest of buyers.
BUTTER:
Churns have reduced some output in order to keep production in line with inventory. However, ice cream manufacturing is slowing, allowing for more cream to be available to the churns. Butter is readily available to the market, leaving buyers complacent. Even increased demand may not be enough to move price very much. Price will remain choppy.
