OPENING CALLS:
| Class III Milk Futures: | Steady to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 6 to 8 Higher |
| Soybean Meal Futures: | $6 to $8 Higher |
| Wheat Futures: | Steady to 2 Lower |
MILK:
The question is whether prices have declined sufficiently to stimulate buying interest. One would think buyers would become more active as demand should increase from those who purchase cheese for fall festivities and holiday demand. Packagers and recutters are generally active as they prepare for the holiday packaging of cheese for gift boxes and other venues. However, concern over demand remains, leaving buyers cautious. Milk production continues to show decreases but should be nearing a low for the year. Both the July Milk Production and Cold Storage reports will be released Monday and could provide market direction for the rest of the week. Class III futures were lower overnight, indicating traders remain cautious and are not willing to buy futures just because prices are low. Even if cash prices hold Monday or even increase, traders may be reluctant to buy milk futures.
CHEESE:
Cheese prices still retain some of the gains of the past two weeks with limited change last week. In fact, barrel price was higher than the previous week. Cheese futures fell last week in tandem with Class III futures as the anticipation was for cheese prices to remain low in the near term. Cheese futures retain a premium to cash with limited upside.
BUTTER:
Butter futures hold no premium to cash with later contracts indicating decreasing prices are expected. Price will not remain in the current range indefinitely. USDA's Cold Storage report is expected to see an increase of inventory from June, but it is not expected to show a gain of inventory compared to a year ago.
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