OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 1 to 3 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 2 to 4 Lower |
MILK:
Class III futures suffered losses on Monday in response to further weakness in cheese and butter. This moved the August Class III contract in line with the July contract. It was hoped that July would be the low for the rest of the year, but that does not appear to be the case presently. The July contract is mainly priced and will show limited movement the rest of the month until expiration. The August contract will begin to be priced this week and will remain open to underlying cash movement over the next month. Strength in cash prices could provide support to move the August back above July. Traders are likely to take a wait-and-see attitude before attempting to take a profit from a short-term trade.
CHEESE:
Cheese prices may be headed back to the lows set on June 24. Cheese buyers should step up to take advantage of the lower prices and begin seasonal buying. However, sellers continue to offer supplies to the spot market, leaving buyers complacent and unconcerned over supply.
BUTTER:
The butter price remains in an uptrend with demand steady and showing signs of improvement. However, current supplies are sufficient for demand with buying interest supporting the market, but not creating any excitement or concern over supply.
