OPENING CALLS:
| Class III Milk Futures: | 8 to 12 Higher |
| Class IV Milk Futures: | 4 to 8 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $1 to $3 Lower |
| Wheat Futures: | Mixed |
MILK:
The strength of milk futures overnight may be the reaction to the friendly June Cold Storage report. Cheese inventory declined from May and remains below a year ago. Lower milk production and declining inventory may set the stage for steady to stronger milk prices as the year progresses. Demand seasonally increases during the second half of the year utilizing inventory to supplement fresh production. The lowest monthly dairy cattle slaughter since June 2008 may temper the price potential as increasing cow numbers could mean increased milk production over time. Feed prices are expected to remain lower based on the estimates for crop production.
CHEESE:
The weakness of spot cheese prices could leave buyers less aggressive Friday as they wait to see if sellers will be more aggressive and willing to sell cheese. There is sufficient supply for the current demand. Buyers may look ahead to upcoming demand and purchase on any price weakness.
BUTTER:
The butter price may see further upside potential now that it seems the market has found support. The June butter inventory at 7% above a year ago may limit upside price potential for the time being. A seasonal increase in demand may provide support and result in higher prices. Tighter cream suppies have reduced churning, which may lower the available supply.
