OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
The pressure on Class III milk futures was a surprise due to higher underlying cash prices on Tuesday. It did not seem as if futures prices were higher than they should have been in relation to cash. It seems traders are not convinced cheese prices will be able to regain the losses during June. However, the recent price bounce should indicate that buying may increase seasonally as they look ahead to increased demand. The limiting factor might be the continued strength in milk production and increasing cow numbers. This should keep sufficient milk available for bottling and manufacturing, eliminating concerns over any supply tightness. Traders will not be too anxious to trade until cash provides direction.
CHEESE:
Cheese prices should see further gains as sellers may not be as willing to move supply to the market, knowing that seasonal buying may improve. The sellers may hold back to see how aggressive buyers will be, similar to what we saw when prices declined in June. Buyers held back as sellers aggressively moved supplies.
BUTTER:
The butter price may slowly trend higher rather than increasing significantly. After a period of consolidation, the uptrend may resume. Domestic demand is steady while international demand remains strong.
