OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 2 to 4 Higher |
MILK:
Milk futures stabilized overnight as much of the liquidation in response to the cheese weakness had been finished. Futures will chop around until spot trading provides further direction. Lower feed prices will dominate the rest of the year based on the outlook for grain prices. The income over feed price will be better than for May as feed prices decreased and the all-milk price increased. The average soybean meal price will be released Thursday morning and used to determine the final price. The movement of feed prices and the increase of milk prices during July will further improve income over feed.
CHEESE:
The weakness of cheese prices Wednesday may cause buyers to pull back to wait and see if sellers may remain aggressive Thursday. Buyers are purchasing for orders and for potential upcoming demand, but have not had to be very aggressive. This has kept the spot market in a sideways trading range. The action Wednesday would suggest this will continue.
BUTTER:
Butter price may show further strength as buyers may now turn their attention toward obtaining supply for the end of the year demand. That may not mean that price will trend higher from now through then, but may provide further support to the market. This may move it above the sideways price range.
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