OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 5 to 7 Lower |
| Soybean Meal Futures: | $2 to $3 Lower |
| Wheat Futures: | Mixed |
MILK:
Milk production is following the usual summer pattern. Hot weather is impacting cow comfort and production. The current demand is steady, keeping the market balanced. This leaves underlying cash prices mixed as buyers and sellers take care of business. There is anticipation supplies will tighten further as milk output remains below last year. However, lower feed prices and the potential they will remain that way may limit the decline of milk production. Culling has been slowing and lower feed prices may keep that trend intact. Replacements are expensive and difficult to find to some extent. Income over feed is expected to improve over the next few months if milk prices follow the current futures and feed prices remain low.
CHEESE:
Cheese prices are expected to remain choppy. There is no catalyst to break prices out of the range they have been in. Buyers are not concerned about supply later in the year enough to cause them to be more aggressive in the spot market. That may come if demand increases and supply tightens. The potential impact on the milk supply due to the bird flu has not materialized as feared.
BUTTER:
Butter has not yet found sufficient buying interest to push the price above the high from early June. The price is supported by buyers and sellers comfortable at the current level. Slower churning may impact the market over the next few weeks as buyer interest may increase as they look ahead to potential demand through the end of the year.
