OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Traders showed no interest in supporting the Class III market on Wednesday despite the increase in cheese prices. After the large price decline in cheese during June, the market has shown little strength. The counterseasonal movement has traders cautious over the upside price potential of the market. Higher milk production ensures a sufficient supply of milk for bottling and manufacturing. There is no concern regarding the milk supply or the availability of dairy products in the market. USDA will release the June Agricultural Prices report today. This provides most of the prices used in calculating the income over feed for the Dairy Margin Coverage program.
CHEESE:
Cheese prices are having a difficult time establishing a seasonal trend higher. Cheese production remains strong due to plentiful milk supplies. Sellers continue to offer cheese to the spot market, keeping buyers satisfied without having to chase the market higher. This is expected to continue.
BUTTER:
The butter price is expected to remain choppy as supply is sufficient for demand. Buyers had been able to purchase significant volumes of butter earlier in the year, which may leave them less aggressive in the second half of the year.
