OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | Mixed |
MILK:
Milk output will be impacted as hot weather is predicted in many areas. Weather seasonally impacts milk production, but some forecasts call for extreme heat with record-high temperatures. Farms have made great strides in implementing systems to keep cows cool but hot weather still has an impact. That may or may not impact the availability or price of milk depending on demand. Traders may wait to see how demand unfolds before they buy milk futures more aggressively. Underlying cash prices have been choppy over the past few weeks leaving traders scalping the market rather than taking long-term positions. Trading activity is expected to be light after the holiday.
CHEESE:
Cheese prices have been choppy and are expected to remain that way near-term. Buyers and sellers are taking care of business as they see fit and have not been buying aggressively for demand later in the year. Sufficient cheese supply leaves buyers comfortable and not concerned over any supply tightness.
BUTTER:
The cream supply is tightening as hot weather impacts milk production and butterfat content. Ice cream and the production of other Class II products have increased creating greater competition for available supplies. This may provide continued support to the market.
