OPENING CALLS:
| Class III Milk Futures: | Steady to 6 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 5 to 10 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
Even though block cheese was higher Monday, overnight trading activity does not indicate traders believe the market has found support and prices will turn higher. Fundamentals do not suggest a change in trend anytime soon. Milk production is slowing as summer weather impacts cow comfort and components. Yet, production remains above a year ago, keeping more than enough milk available for bottling and manufacturing. Lower June milk price have been recorded with prices being reflected in milk checks this month. July futures indicate the potential for milk prices to be even lower unless the market finds significant support over the next few weeks. The Global Dairy Trade auction took place Tuesday with the trade weighted average down 3.3%.
CHEESE:
Traders do not expect the bounce of block cheese price on Monday to hold. In general, buyers continue to purchase as needed and are not purchasing for later demand. That may surface as the summer progresses as increased ownership will be desired ahead of increased demand later in the year. However, plentiful supply leaves buyers confident over sufficient product being available for the time being.
BUTTER:
Price moving above the range Monday could move buyers to be more aggressive as there is potential for further upside. However, if an uptrend is developing, the increase may be slow. There is sufficient butter available for demand.
