OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 9 Lower |
| Soybean Futures: | 20 to 25 Lower |
| Soybean Meal Futures: | $4 to $5 Lower |
| Wheat Futures: | 15 to 20 Lower |
MILK:
Milk futures may be in a range in which they will remain for the near term. Traders do not seem to feel prices will trend higher anytime soon. Buyers remain unaggressive in the spot market. Current milk supply is sufficient for demand from both bottling and manufacturing. Inflation is having an impact on product movement, and this does not seem that it will change anytime soon. Hot weather will increase in areas of the country later this week, impacting milk production. Milk components have been decreasing but are reported to be holding better than a year ago. USDA will release the World Agricultural Supply and Demand report at 11 a.m. CDT. The report will contain their estimates on milk production, milk prices and product prices for this year and next year.
CHEESE:
There has not been much excitement in spot cheese trading over the past week. Prices had increased prior to that with the increase being short lived. Cash cheese activity has been light on the daily spot market with buyers and sellers able to take care of business through regular channels without the need to come to the spot market. This seems to indicate a balance between supply and demand.
BUTTER:
Butter supply and demand also seems balanced but at a much higher price than cheese. Some slowing of demand has not had much of an impact on price. Slower butter production and good exports keep inventory from building compared to a year ago. Price is expected to hang around the current level.
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