OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 11 to 13 Lower |
| Soybean Futures: | 12 to 21 Lower |
| Soybean Meal Futures: | $4 to $5 Lower |
| Wheat Futures: | 10 to 12 Lower |
MILK:
Class III futures traded mixed overnight with more volume than usual after a holiday weekend. However, there is little to cause excitement at present. The underlying cash markets have not been trending in a direction as supply is sufficient for demand. There is not an overabundance of supply nor a tightness of supply. Milk production has slowed seasonally due to warmer weather but continues to remain above a year ago. Milk components have slipped back from their peak but remain above a year ago and at record levels. Grain futures took a hit overnight, taking back the gains of last week. Crop conditions are good, and President Trump is set to notify countries of new tariffs up to 70%, effective Aug. 1 on countries failing to reach a trading accord with the U.S. Lower grain prices generally mean lower milk prices.
CHEESE:
Cheese prices are not expected to increase much under the current market fundamentals. A slowing of cheese production and an increase in demand are needed to build support for prices. The milk supply is sufficient to keep cheese plants running on full schedules.
BUTTER:
The butter price is trending higher, with the price on Thursday closing at the highest level since Jan. 13. Buyers may turn more aggressive as they look ahead to demand later in the year. Bulk butter is in good demand while retail demand is steady. Further gain is expected this week.
