OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 8 to 14 Lower |
| Soybean Meal Futures: | $4 to $6 Lower |
| Wheat Futures: | 10 to 12 Lower |
MILK:
Class III milk futures held onto the gains of Monday in overnight trade. Trading activity was moderate for a night session. Milk futures will follow underlying cash rather than building a premium or holding a discount as traders will be cautious over the level of milk production and the level of demand through the rest of the year. The outlook for milk prices has improved with Class III futures showing a seasonality with prices peaking in September and October. This may change as the second half of the year progresses and the balance of supply and demand unfolds. Tuesday is the last day to trade July futures and options with the July Federal Order class prices to be announced Wednesday.
CHEESE:
Cheese prices remain rangebound as buyers and sellers appear comfortable with supply and current prices. Buyers seasonally become more aggressive as they look ahead to fill contracts and purchase supply for increased demand. The current supply of cheese is sufficient with little concern over a tight supply. This may continue for another few weeks.
BUTTER:
The butter price continues to chop around with little reason to move higher. The price uptrend has stalled with the current trend sideways. Both domestic and international demand is steady, leaving little reason to be concerned over supply. Churning has slowed due to tightening cream supplies, but remains adequate for demand.
