OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 6 to 10 Higher |
| Soybean Futures: | 15 to 20 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 14 to 18 Higher |
MILK:
Milk futures keep marching higher. Class III continues to increase despite lagging underlying cash. Class IV continues higher, supported by underlying cash. Milk production is holding but at lower levels than a year ago. It will remain that way due to reduced cow numbers and a high cost of production. The replacement market is tight, leaving most farms keeping cow numbers at the present level. Many processing facilities are running at lower capacity due to a reduced workforce not at the overall capacity of the plant. July and August Class III contracts closed above $25.00 with July and August Class IV contracts trading above $26.00.
CHEESE:
The decrease of cheese price on the Global Dairy Trade auction Tuesday may have an impact on demand and price potential. Cheese prices remain lower than a few weeks ago with price chopping around as business is being done without any fanfare. Traders anticipate prices will increase, but disappointment may soon develop if buyers do not become more aggressive soon.
BUTTER:
Price is running above world price by about 21 cents. This may have some impact on international interest in time. However, overall demand remains strong keeping inventory from building to year earlier levels. Buyers continue to purchase ahead to increase ownership for later demand.
