OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 4 Lower |
| Soybean Futures: | 2 to 6 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
Milk futures slipped a little Wednesday due to the inability of underlying cash to provide direction. Historically, steady spot prices supported the market as traders viewed it as support. However, now they view it as somewhat negative due to prices not being able to increase. Milk futures have been trying to find a level of support, but so far, the overall trend remains down. Milk production continues to remain strong and is expected to remain that way. However, high feed prices and continued labor problems may result in reduced production as the year progresses. The July Federal Order Class III and Class IV prices showed only a 3-cent difference with Class III at $15.95 and Class IV at $15.92. They have not been this close for a long period of time.
CHEESE:
Prices just cannot seem to uncover any sustained buying interest. Blocks are back into the area at which they have been for much of the year. Current fundamentals do not suggest much of a change from this pattern. There are reports of some cheese varieties that are in tight supply, which has resulted in limited new orders being taken and current orders being reduced. However, that is not being reflected on the spot market as it reflects the supply of fresh cheddar cheese.
BUTTER:
The slow price uptrend remains intact. Reduced butter output by some plants that have opted to sell some cream and increasing demand has finally allowed price supply to tighten a bit. There is still plenty available, but inventory is declining as production is not keeping up with demand, requiring inventory to be used to satisfy orders.
