OPENING CALLS:
| Class III Milk Futures: | 6 to 15 Lower |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $3 to $4 Lower |
| Wheat Futures: | 8 to 11 Lower |
MILK:
Milk futures may see further weakness early as traders may not be willing buyers ahead of spot trading. The weakness last week was unexpected, leaving traders cautious over the potential for prices this week. The milk supply has not tightened sufficiently to continue to support the market. Prices had been driven higher by the perception lower milk production would tighten manufacturing supplies. That has not been the case. Spot milk prices have increased but supply is available for bottling and manufacturing needs. USDA will release the June Dairy Products report Monday afternoon. This report will show the production of dairy products for the month providing an idea of the level of supply and demand.
CHEESE:
Cheese buyers have not been aggressively looking for fresh cheese. That is the cheese traded on the daily spot market. If buyers begin buying fresh cheese aggressively, the market will increase and trend higher. Usually, this takes place in August and September as there is increased demand from packagers and recuttters as they prepare for holiday demand. The current supply of cheese is sufficient leaving little concern for buyers.
BUTTER:
The butter price is expected to move in a sideways pattern for now. Manufacturers have been moving extra butter into storage, which will be available to supplement fresh production when demand increases seasonally. Buyers have been purchasing to increase ownership for current and expected demand.
