OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 16 to 20 Lower |
| Soybean Meal Futures: | $4.00 to $5.00 Lower |
| Wheat Futures: | 3 to 4 Lower |
MILK:
Milk prices gained last week on increased optimism. The milk production report showed output down 1%, leaving less milk on the market. Milk production is not expected to exceed last year's level anytime soon. The cold storage report showed cheese inventory below a year ago. This provided support to milk futures. Stronger cash prices for the week added to the support. Buyers of the underlying cash may soon turn more aggressive if they want to purchase ahead of the increase in seasonal demand. This would provide further support to milk prices.
CHEESE:
The block cheese price has remained in a range since mid-May. The barrel price has rebounded from the low on July 12. Traders anticipate increasing prices as demand improves during the second half of the year supporting milk futures. Cheese inventory below a year ago is adding to the idea of higher prices ahead.
BUTTER:
The butter price is expected to remain in a range near term. Inventory is higher than a year ago leaving more supply available as demand improves seasonally. The cream supply is tightening but there remains sufficient volume for active churning.
