OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | 6 to 9 Lower |
| Soybean Meal Futures: | $3 to 5 Lower |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Milk futures have little reason to move much or trend higher at the present time. The underlying cash is somewhat stable with business being done as needed. Buyers of cheese and butter are not concerned over supply, which leaves them taking care of business without having to be aggressive. Milk production is running below a year ago and is expected to remain that way, potentially for the rest of the year. There are some concerns that current underlying cash prices will not hold through the rest of the year without the support of dry whey and nonfat dry milk. USDA has not been very optimistic with their estimates of milk and product prices for next year. Milk production will respond to higher milk prices, but the current milk prices and futures prices throughout next year leave much to be desired and not good enough to encourage expansion. Tuesday is the last trading day for August futures and options with the Federal Order prices announced Wednesday.
CHEESE:
Buyers and sellers are taking care of business in the country, leaving little need to come to the spot market to buy or sell. This leaves the market steady. Blocks may move back above the $2.00 level but are unlikely to develop a strong uptrend unless demand improves both domestically and internationally.
BUTTER:
Price may have a difficult time moving much higher as inventory is higher than a year ago and production is ongoing. More cream has recently become available as milk is being standardized for school systems. There is no concern over supply, leaving buyers purchasing as they need rather than purchasing aggressively to increase ownership for later demand.
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