OPENING CALLS:
| Class III Milk Futures: | 3 to 5 Higher |
| Class IV Milk Futures: | 2 to 5 Higher |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 2 to 4 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 1 to 3 Lower |
MILK:
Milk futures are the recipients of seasonal price strength. It is uncertain how aggressive buyers will be at the current price levels. Higher prices could affect demand over time, but that may not have much impact as the industry looks ahead to fall and holiday demand. Milk production continues to decline but may be near the low for the year as the summer weather will temper in many areas over the next few weeks. The July Milk Production report to be released Wednesday will provide information on what to expect for the rest of the year. A slow culling rate and continued low grain prices may result in increased milk production through the end of the year.
CHEESE:
Buyers did not show up during spot trading Monday as they may have waited to see if sellers would be more aggressive at the current prices. Sellers placed offers but had no desire to lower prices, indicating buyers may need to pay more to purchase cheese. Cheese prices could remain choppy but with an upward bias.
BUTTER:
The butter price is expected to reach the highs of 2022 near term. The price breaking out of the long-term sideways pattern it had been in suggests seasonal buying has kicked in with buyers looking ahead to seasonal demand. Inventory is higher than a year ago but may decrease quickly due to increased domestic and international demand.
