OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 4 to 5 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 4 to 6 Higher |
MILK:
Milk futures continue to lack support as the underlying cash provides no bullish influence on the market. Milk production has declined due to the impact of summer weather, but it remains above that of a year ago. Milk prices will have a difficult time increasing unless overall demand for dairy products improves. Much of the news is that dairy demand is good, but not increasing as it generally does at this time. Hopefully, the increase in demand has just been slower to develop and will increase as the summer progresses. The market will need to prove itself before traders might get excited about buying futures aggressively.
CHEESE:
Cheese prices are near the bottom of the wide trading range they have been in since October. Hopefully, demand will improve and prices will move back to the levels seen in May. Strength may be limited due to buyers being able to purchase a significant amount of cheese at lower prices.
BUTTER:
The butter price is expected to resume the uptrend, but the price is expected to remain choppy. There is no supply shortage that would tighten the market and increase prices rapidly. The supply of cream has decreased but remains sufficient to keep churning active.
