OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | 4 to 7 Lower |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 4 to 6 Higher |
MILK:
Milk output is being impacted by the hot weather, which may be difficult for cows to rebound from after cooler weather moves back in. Milk availability at manufacturing plants is reduced both from lower milk receipts and more milk moving to bottling for schools that are now open across the country. Lower component values have reduced cheese yields. This is not expected to tighten supply enough to cause concern over availability. USDA will release the July Dairy Products report Tuesday, indicating production of products during the month. West Coast port workers have voted to ratify a contract which will keep ports operating and products moving. A lot of product comes into the U.S. and moves out of the U.S. through these ports. This is important to all exported commodities.
CHEESE:
It seems as if cheese prices may continue to remain rangebound. It may be difficult for blocks to move back above $2.00 unless demand improves. Prices may drift as production and inventory are sufficient for demand. However, inventory remaining below a year should provide support under the market.
BUTTER:
Butter is well priced in relationship with supply to demand. Sellers continue to offer substantial amounts to the spot market, making it easy for buyers to purchase ahead for later demand. This may limit aggressive buying later in the year as demand improves. The market seems balanced at the present time.
