OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 8 to 10 Lower |
| Soybean Futures: | 15 to 20 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 3 to 5 Lower |
MILK:
Milk futures closed mixed Wednesday due to underlying cash unable to show a decisive price direction. This may be the pattern for a while unless the June Milk Production report shows a reason to move the market one way or the other. However, even though more emphasis has been put on the production report recently, the market may not move much as traders will wait for the Cold Storage and Cattle Inventory reports released Friday. I estimate June milk production to be down 1.0% from a year ago with cow numbers unchanged from the previous month. The report will be released at 2 p.m. CDT.
CHEESE:
The inability of block cheese to uncover buyer interest at the current price is a concern. Buyers have more than enough on hand for the present time and are not concerned over supply. Demand will need to hold and improve, which might be difficult under the current economic circumstances.
BUTTER:
Price has bounced from the current level a few times and this is expected again. However, with reports of slowing retail and food service demand, it could move lower. There has been quite a bit of butter traded over the past few weeks on the daily spot market. Buyers may be aggressive now, resulting in them being less aggressive later this year.
