OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 7 Higher |
| Soybean Futures: | 12 to 18 Higher |
| Soybean Meal Futures: | $5 to $7 Higher |
| Wheat Futures: | 3 to 4 Higher |
MILK:
Traders were unconcerned about taking a position in the overnight trade. Bids and offers were placed and left without a desire to get in or out of the market. Trading activity is expected to be light ahead of spot trading as traders are uncertain about the direction of the underlying cash market. Buyers of cheese and butter have not become aggressive due to a sufficient supply being available. Traders will wait for direction from spot trading and the June Milk Production report to be released Tuesday afternoon. Overall milk production continues to decline, but the supply has not tightened sufficiently to increase the concern over tighter supplies. Milk futures are expected to be choppy following the underlying cash.
CHEESE:
Cheese prices may remain choppy as buyers and sellers seem comfortable at current prices. Buyers are not concerned over supply and manufacturers have the supply they need to sell. This indicates the market is balanced for the time being. The demand for some varieties of cheese is improving, but seasonal buying has not surfaced to any extent. The milk supply has tightened but is sufficient for demand.
BUTTER:
The butter price has declined to a level at which buyers may step up to purchase supply for later demand. Churning is slowing as the cream supply tightens. USDA will release the June Cold Storage report Thursday, showing the inventory available to supplement fresh butter production.
