OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 8 to 12 Higher |
| Soybean Meal Futures: | $4 to 5 Higher |
| Wheat Futures: | 4 to 6 Higher |
MILK:
Class III milk futures have been trending nicely higher this week, even though there has not been much movement of underlying cash. Traders feel the market has support and may hold or trend higher. Hot weather will impact milk production over the next week. Milk production rebounded well from the previous bout of hot weather, but this next period may impact milk production to a greater extent and make it more difficult for milk production to recover. Plants will see reduced milk receipts at a time when all schools will be in session for the year. This should provide support, potentially keeping the market slowly trending higher. FSA has not yet released the average soybean meal price for July, leaving the income over feed price uncertain.
CHEESE:
Steady cheese prices are being viewed by the trade as supportive. Demand is steady for most cheeses with pizza cheeses seeing a significant increase in demand due to schools being open and football season in full swing. Cheese production is steady with sufficient milk supply. However, extra milk is difficult to find and what is available is priced above class. This should keep inventory below a year ago through the end of the year.
BUTTER:
Price is expected to remain in a range as buyers and sellers seem comfortable at the current price range. Churning is active as cream has recently become more available. Demand is steady to slowly increasing, utilizing production and inventory.
