OPENING CALLS:
| Class III Milk Futures: | 10 to 20 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 7 to 9 Lower |
| Soybean Meal Futures: | $0.50 to $1 Lower |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Traders turned friendly on the market to begin the week. Class III milk futures post double-digit gains in active trading. The minor strength of cheese price during the second half of last week gave the impression prices may have found a bottom. Traders are buying futures in the attempt to catch a rebound in prices. It is unlikely they will establish long-term positions as the market is expected to remain choppy. Milk production has slowed due to the impact of hot weather, but is expected to remain higher than a year ago. USDA will release the June Milk Production report on Tuesday, which will provide the level of milk production, the number of cows, and production per cow for the month.
CHEESE:
The increase in spot cheese prices in the second half of last week may indicate prices are low enough for buyers to become more aggressive. This may provide further support to the market this week. Seasonal buying should be evident, but only if demand improves seasonally.
BUTTER:
The butter price has been struggling, falling to the lowest level in a month. This has been a surprise because of steady retail demand and strong export demand. A tightening cream supply is reducing churning activity, but production remains sufficient for demand. Sellers may be less aggressive as the summer progresses and further declines in production impact supplies.
