OPENING CALLS:
| Class III Milk Futures: | 5 to 15 Lower |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 10 to 14 Lower |
| Soybean Meal Futures: | $4 to $6 Lower |
| Wheat Futures: | 5 to 7 Higher |
MILK:
Class III futures took a hit yesterday with follow-through in the overnight session as those who wanted out of long positions only found bids quite a bit lower. Traders were quick to switch their perspectives on the market and were afraid they were going to be caught long in a market that may turn lower. Futures lost quite a bit of premium even though underlying cash cheese prices remained steady. There remains much concern over the level of demand that will be seen through the end of the year. Milk production may be reaching its low point in a few weeks, but it is not expected to bounce back to any great extent anytime soon. Tight heifer supply will limit growth of cow numbers with expansion limited to farms that assume the cows from other farms that go out of business. Class IV futures held well even though butter and nonfat dry milk declined.
CHEESE:
Cheese price movement during spot trading will be the key to the movement of Class III futures. Traders have liquidated in fear of a decline of cash even though price remained steady yesterday. Only sellers showing up during spot trading looking to sell one load each in blocks and barrels, increased the pressure on milk futures.
BUTTER:
Price could go either way today as buyers and sellers are comfortable doing business at the current level. It just depends on who wants to be more aggressive. There is sufficient supply for demand. Inventory is expected to show growth during July, but it is not expected to show a gain on year-ago supplies.
