OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Lower |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 3 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Lower |
| Soybean Futures: | 2 to 5 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 5 to 7 Lower |
MILK:
Milk production has declined but has stabilized for the time being. Summer weather has been variable across the country, leaving various levels of impact on cow performance. The milk production report for July will be released Monday and is expected to show milk production slightly below a year ago. Traders are cautious over the upside potential of milk futures, even though cash prices have been trending higher. There is a feeling that upside potential may be limited with reduced world demand leaving more available for domestic consumption. Milk futures may trade mixed this morning until spot trading shows direction.
CHEESE:
The question of whether blocks will be able to hold causing barrels to find support or if the weakness of barrels is possibly pulling blocks down is on the minds of traders again after the price divergence Wednesday. Buyers seem to be willing to purchase cheese slowly to increase ownership for upcoming demand.
BUTTER:
The jump of butter price Wednesday may indicate buyers are now turning more aggressive to purchase supply for later demand. The record number of 49 loads traded was a bit of a surprise as daily volume on the spot market has been very light for several weeks. Buyers were not shy about purchasing even at a higher price as they wanted to obtain supply.
.jpg)
