OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 4 to 7 Higher |
| Soybean Meal Futures: | $4 to $6 Higher |
| Wheat Futures: | 4 to 6 Lower |
MILK:
Milk production is decreasing and below year-ago levels. Milk receipts at the plant level are decreasing, which has nearly eliminated the availability of spot milk and what is available is priced above class. Milk prices are improving but not at a pace at which farms will reduce aggressive culling or will increase cow numbers. Milk futures will respond with higher prices if underlying cash prices find support and trend higher. Hearings on the Federal Milk Marketing Order began yesterday in Carmel, Ind., with the hearings expected to last several weeks. Various proposals will be considered with testimony from farmers and others from the industry. Any vote on whatever the changes might be will not take place for at least a year.
CHEESE:
The July Cold Storage report was friendly to the market in that it showed cheese inventory below a year ago. Inventory generally builds during the first half of the year. This year, only the month of June showed inventory above the level of the previous year. Now is the time of year during which inventory declines, output slows, and demand improves. This has yet to provide continued strong support to the market.
BUTTER:
Price is expected to continue to chop around as the current price level seems to be comfortable for buyers and sellers. A sideways price range may again be developing. Inventory of butter 5% above a year ago may keep a lid on price potential.
