OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 7 to 10 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 20 to 25 Higher |
MILK:
Overnight trade was confined to August and September Class III contracts. Cheese prices remaining unchanged Tuesday with no trading activity leaves traders wondering if the market is taking a breather in the downward spiral or whether it will finally find support. Milk futures have declined substantially over the past month and a half with very little price rebound. There is little concern over the supply of milk as demand has slowed a little right along with the decrease of milk production. USDA will release the June Milk Production report on Thursday, providing the level of milk production for the month compared to a year ago. Reduced milk output was a concern earlier in the year, but that has changed as reduced milk production has not resulted in the lack of supply. Trading activity is expected to be limited until spot trading takes place.
CHEESE:
Cheese buyers continue to assess their current supply with the potential for demand. The buying frenzy earlier in the year on concern over supply has resulted in more cheese on hand than usual for this time of year with much of that cheese purchased at a higher price. This has reduced the interest from buyers at a time of year when they generally become more aggressive.
BUTTER:
Butter is comfortable in the current price range between $2.90 and $3.00. Buyers and sellers have been active on the daily spot market. The decline of price on the Global Dairy Trade auction Tuesday may indicate a general slowing of demand worldwide. International demand has remained strong, but the current world price is about 40 cents lower than the U.S. price.
