OPENING CALLS:
| Class III Milk Futures: | 4 to 10 lower |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | Steady to 1 lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 4 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 3 Higher |
MILK:
Class III milk futures rebounded from the lows Wednesday after spot cheese prices increased, but traders were not convinced the strength would continue. Overnight trade supports that idea as futures are lower. Traders will be cautious over buying into the market without further confirmation of price strength. Milk production will be impacted by the hot weather across much of the nation. It is uncertain whether this will tighten supply enough to support milk price. According to Dairy Market News, some spot milk in the Midwest has a price tag as much as $5.00 below class. Hot weather and lower milk receipts might reduce that discount as manufacturers might be looking to purchase more milk to keep plants running full.
CHEESE:
Buyers stepped up Wednesday as they need to purchase cheese to fill orders. The indication is that the buying was not to increase ownership for later demand. Some of that has been accomplished already, leaving buyers less interested in adding more due to the uncertainty of demand.
BUTTER:
Price may continue to flirt around that $3.00 level for a time. It may be a buyer threshold for now as traders assess whether inflation will have a greater impact on demand. Butter has already been purchased ahead for the third and fourth quarters, potentially leaving them less aggressive for now. Nonfat dry milk has been struggling over the past week as price shows weakness and impacting Class IV futures.
