OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 2 to 5 Higher |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | 10 to 12 Higher |
MILK:
Class III milk futures adjusted Tuesday, finding a level of balance after a few days of up and down trading in cash cheese. August is the front month as July finished trading Tuesday with the Federal Order class prices being announced Wednesday. The trade expected the Class III price to be announced at $22.53 with Class IV at $25.81. It has been surprising that Class IV has remained significantly higher than Class III for the duration of time that it has. Milk futures show Class IV may remain higher into next year. Trading is expected to be light and price movement minimal prior to spot trading.
CHEESE:
Cheese prices may be settling into a narrow range for the time being. Buyers will purchase at a dip in price while sellers will sell at a bump in price. Cheese buyers do not yet see the need to aggressively purchase for demand later in the year as they are uncertain about that demand.
BUTTER:
Price moving above the range it has been in for two months and to the highest level it has been since Sept. 29, 2015, should continue to provide support to the market. The concern is continued weakness of nonfat dry milk. Price is at the lowest level it has been since Dec. 9, 2021. This has an impact on Class IV price and offsets some of the influence higher butter price has on the market.
