OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 12 to 15 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 5 to 7 Lower |
MILK:
Milk futures have made an impressive run higher over the past week. This moves the market from dismal to hopeful. There remains much uncertainty in the market as supply continues to remain plentiful, fluid milk consumption declines, and export demand slows. However, summer weather impacts milk output which may reduce production to some extent and lower crop conditions may impact feed availability and price. Seasonal buying of cheese and butter may begin which may make buyers a bit more aggressive on the spot market. USDA will release the World Agricultural Supply and Demand report at 11:00 am Central time which will have an impact on grain prices. This could have an impact on milk prices in the longer term depending on grain price potential. The report will contain USDA's estimates for milk production, milk prices and dairy product prices for this year and next year.
CHEESE:
Traders will be waiting to see if another day of stronger cash prices will be realized again. There is some that hope prices will continue higher, but there is caution that the upside might be limited, or the increase might have run its course. Unfilled bids and no uncovered offers at the close yesterday might suggest further buying interest.
BUTTER:
Demand for butter is steady with sufficient supply available to meet that demand. Buyers may be a little more aggressive as they look ahead to demand later in the year, but that aggressiveness might be limited due to higher inventory and strong production. Heavy nonfat dry milk supply will be an anchor on Class IV futures.
