OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 6 Higher |
| Soybean Futures: | 10 to 14 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 10 to 12 Higher |
MILK:
Short-covering was anticipated into the three-day weekend, and it appears that may be the order of the day. Spot trading price movement may change that, but a bounce is expected due to the pressure on futures seen this week. Overall, the market is seeing sufficient milk production to meet demand from bottlers and manufacturers and a plentiful supply of dairy products available to the market. Hot weather continues to linger in some areas of the country, but time is limited as to that having an impact on milk production. However, that does not mean milk production will rebound to any great extent. Feed prices will remain high this year with those areas that have been suffering from drought needing to pay more to receive feed supplies. This will limit production growth as farms may not expand. Tight replacements are also an issue limiting production growth. USDA will release the July Dairy Products report Friday afternoon, providing the level of dairy product production for the month.
CHEESE:
Cheese is available with buyers not aggressive on the daily spot market. Supply is being purchased in the country to meet demand. Demand remains good with a slight increase noted in the Midwest. Buyers are purchasing in preparation for the holidays with sufficient supply in the country reducing the need to come to the spot market.
BUTTER:
There is strong support under the market with buyers purchasing for fall and holiday demand. This could push price above $3.10 but that level might find buyer resistance. The production of butter in July is expected to have been lower than a year ago on the report to be released Friday.
