OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 8 to 10 Higher |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $4 to $6 Lower |
| Wheat Futures: | 12 to 15 Higher |
MILK:
The decline of Class III milk futures was not a welcomed sight after hopes of higher prices were renewed earlier in the week. Trading activity overnight points to further pressure until spot trading provides more direction. The significant decline of cheese prices may move buyers back to the sideline to purchase only as needed rather than looking ahead. Lower milk production both seasonally and as a result of hot weather has not tightened milk supply as of yet. Production in June moved slightly above a year earlier, but July may be a different story. Temperatures during the month have been hotter than a year ago with more hot weather in store for next week in many areas. Currently, milk supply remains readily available for demand.
CHEESE:
Cheese prices may have found support, but it does not appear the market is ready to trend higher. Sellers of cheese continue to offer it to the market rather than holding and speculating on higher prices. Manufacturers do not want to hold on to inventory any longer than necessary due to the idea upside price potential may be limited.
BUTTER:
Butter moved near the top of the trading range again and is poised to move above $3.00. The pattern has been that buyers lose interest in buying near the top end of the range and this may not be the exception. Price is expected to remain rangebound for a period of time.
