OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 8 to 12 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
Traders were uncertain what to do in the overnight trade due to the volatility of the past two days. There may be limited movement of futures until direction is seen from spot trading. Cheese and butter buyers may step up today to take advantage of the lower price. At current price levels, the market may establish a sideways trading range. The impact on milk production because of the hot weather this week may be significant. Cows may have a difficult time regaining milk production after this with many having to wait until their next lactation before regaining full potential again. USDA will release the July Cold Storage report this afternoon providing an idea as to demand during the month and inventory compared to a year ago.
CHEESE:
Cheese prices may become choppy at these levels as upside might be limited and downside might be minimal. There is sufficient cheese for demand, but output is reduced due to the lower milk supply available for manufacturing. This may limit supply at a time when buyers become more active as they prepare for upcoming demand.
BUTTER:
Price may have a difficult time moving much higher than it currently is. World price is lower and export demand has slowed. Inventory may still be higher than a year ago. However, that may become more in line with last year as the rest of the year progresses. The cold storage report today might show inventory moving more closely to the previous year's level. Churning has slowed as cream supply has tightened.
