OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 4 to 8 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
It certainly was good to see the strength of milk futures Tuesday, but it needs to see further strength in cheese and butter prices to see further upside. It is interesting to see that a few contact months showed no offers posted overnight. Cheese prices need to trend higher and not just chop around. Cooler weather has moved into many areas, which is helping to relieve some heat stress on cattle. Overall milk production remains strong and above year earlier levels. Manufacturing plants are receiving sufficient milk supply even though higher volumes of milk are moving to bottling. Income over feed for the month of July was $5.69 resulting in a payment of $3.81 for those who chose the highest level under the Dairy Margin Coverage program and have not reached the cap of 5 million pounds. USDA will release the August Federal Order class prices Wednesday.
CHEESE:
Buyers and sellers seem comfortable in the current price range that has been prominent for much of the year. Demand has been strong, but steady. Buyers should be purchasing ahead for demand later this year. So far, they have been able to obtain the cheese they need without having to be aggressive.
BUTTER:
Price is trending higher, but the duration of the uptrend is uncertain. Exports continue to remain strong, and inventory is being used to supplement fresh supply. This may provide continued support keeping price on an uptrend.
