OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | Stady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | 7 to 9 Higher |
| Soybean Meal Futures: | $4 to $6 Higher |
| Wheat Futures: | 3 to 5 Higher |
MILK:
Milk checks will be low as farmers receive their milk checks for July milk with the Class III price at the lowest level since May 2020 at $13.77. However, it appears this may be the worst of it with current August Class III futures indicating a potential increase of around $3.50 per cwt. In about another 1 1/2 weeks, the price for August will be mostly calculated and will not move very much after that, leaving it critical underlying cash prices remain at present levels over the next 1 1/2 weeks. Milk production is slowing but there is sufficient available for needs. Spot milk prices are improving, leaving less available for purchase for those who have capacity for extra milk.
CHEESE:
Steady cash cheese prices the past two days leave traders uneasy as to price direction. If prices were too high based on current supply, sellers would have been more aggressive as they would take advantage of the higher prices to move more product. However, that has not been the case, possibly indicating sellers are comfortable holding cheese as milk supplies decline, reducing cheese production.
BUTTER:
The recent weakness of butter has been a little surprising. However, it may be temporary as demand is expected to improve with buyers looking ahead to later demand. It is interesting that butter futures have no premium in the market. Generally, futures carry a premium to cash. This indicates traders are not expecting much for price potential.
