OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 5 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 3 to 5 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Milk production for June was about as expected, leaving little reason for the traders to get excited. The strength of cheese on Tuesday may have limited upside potential unless buyers turn their attention to demand later in the year. The current cheese prices are reasonable and buyers may become more aggressive as they desire to increase cheese supply. Milk production continues to run below a year ago, which was expected in June and may remain that way through the rest of the year. Class III futures continue to slowly increase, improving the outlook for milk prices as the year progresses.
CHEESE:
Cheese prices increased Tuesday but will need to see further strength to break out of the sideways trading range they have been in. Cheese production has remained steady as sufficient milk has been available for manufacturing. Cheese inventory has not been growing which may provide further support as the demand increases seasonally.
BUTTER:
The recent decline in the butter price has not increased the buying interest very much. It was anticipated buyers would purchase on the weakness to increase supply for the Fall and holiday demand. Trading has been active as sellers continue to offer loads to the spot market. This leaves buyers complacent as supply is readily available.
