OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 7 Lower |
| Soybean Futures: | 8 to 12 Lower |
| Soybean Meal Futures: | $4 to $5 Lower |
| Wheat Futures: | 7 to 9 Lower |
MILK:
It will be an interesting day for milk futures as the underlying cash yesterday did not provide definite direction. Overnight trading activity was light and slightly higher. Underlying cash could find some buying interest again as buyers look ahead to demand through the rest of the year. The potential for lower milk production and tighter supply could increase the interest of buyers to purchase now rather than wait and risk prices increasing further. Milk futures still maintain gains after the selling pressure of earlier in the week, but prices remain far short of what many farms need to cash flow. USDA will release the June Agricultural Prices report today which will show average prices used in the calculation of income over feed for the Dairy Margin Coverage program. There should be a large payment for those who have not exceeded the 5-million-pound production cap.
CHEESE:
It will be interesting to see if block cheese price will show further strength. Buyers may remain interested in purchasing now rather than later. With the potential for continued tightening of milk supply, cheese may remain supported. Barrels are in a different posture with low bids indicating there may not be a strong desire to purchase aggressively in the near term.
BUTTER:
Price action points to continued support and the strong potential of price to grind higher. Buyers are looking ahead to potential demand through the rest of the year. Seasonal buying is expected to continue. However, there may be some price corrections or price stability at times.
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