OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 5 to 7 Higher |
| Soybean Futures: | 10 to 13 Higher |
| Soybean Meal Futures: | $3 to $4 Higher |
| Wheat Futures: | 7 to 9 Higher |
MILK:
Traders showed further support for Class III futures overnight. The anticipation is that underlying cheese prices may have found a bottom. This could increase the interest of buyers as they want to take advantage of the lower prices. Buying interest usually increases at this time of year as they look to the upcoming demand. Even though the supply of milk is sufficient for demand, the decrease in milk output due to summer weather does have a psychological impact on traders. USDA will release the June Milk Production report on Tuesday.
CHEESE:
Cheese buyers have not yet turned aggressive, but prices held steady on Wednesday and blocks increased on Thursday, which may have indicated the market has found a bottom. However, it is unlikely that buyers of cheese will become very aggressive as they have no concern over cheese supplies.
BUTTER:
The butter price may be content to remain sideways for the time being, as buyers are purchasing what is being offered on the spot market without having to chase the price higher. Retail butter demand is steady, while food service demand is less than expected for this time of year.
