OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 3 Lower |
| Soybean Futures: | 4 to 6 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 1 to 2 Lower |
MILK:
The bearish milk production report continues to linger, keeping a cloud over the market. USDA will release the June Cold Storage report this afternoon, which could provide some positive numbers with lower cheese and butter inventories compared to a year ago. However, that may not be enough to change the bearish attitude prevalent in the market. June dairy cattle slaughter declined from the previous month, and increasing cow numbers will ensure sufficient milk will be available for bottling and manufacturing needs. It may be difficult for milk prices to rebound unless there is a significant increase in demand.
CHEESE:
The minor increase in the block cheese price on Thursday provides a glimmer of hope that cheese prices may have found a bottom. However, buyers may not be aggressive as they feel comfortable with supplies. Strong milk production is expected to keep cheese production above a year ago.
BUTTER:
The butter price may have limited upside potential. Churning is not quite as active as it had been due to increased demand from Class II product manufacturers and a decline in the butterfat content in the milk. The price should increase as seasonal buying improves. However, buyers have been able to purchase butter and store it for later use, reducing the need to be aggressive.
