OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 8 to 10 Lower |
| Soybean Futures: | 8 to 10 Lower |
| Soybean Meal Futures: | $2 to $4 Lower |
| Wheat Futures: | 6 to 8 Lower |
MILK:
Milk futures took a beating Tuesday as underlying cash continues to move steady to lower for cheese and remains choppy for butter. Milk production is variable across the country but should be nearing its low point. Milk production last month showed a strong gain in production per cow, which resulted in overall milk production slightly higher than a year ago. The level at which milk production will rebound this fall will determine production growth in comparison to last year. Cow numbers are not expected to increase very much with production per cow fueling the gains. The ongoing impact of the high cost of production will determine overall milk output. USDA will release the August Federal Order prices Wednesday. The July Agricultural Prices report will also be released, providing the average prices used in the calculation of income over feed for the Dairy Margin Coverage program.
CHEESE:
Diverging cheese prices Tuesday was just the result of buyers and sellers taking care of business. Traders will view the bounce of blocks as temporary unless proven otherwise.
BUTTER:
Price may slip further again Wednesday due to buyers not being interested during spot trading Tuesday. Buyers may wait for a further price decline before stepping back in. However, downside risk is limited with price not anticipated to fall below $3.00.
