OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Lower |
| Soybean Futures: | 2 to 3 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | Mixed |
MILK:
Nearby Class III futures moved to the highest level in a month. Underlying cash cheese prices have provided the support as buyers have been aggressive. It is uncertain whether cheese prices will see much further upside potential due to strong cheese production and higher milk output than a year ago. The potential for better milk prices through the rest of the year will keep culling low and cow numbers increasing. Feed prices are expected to remain low, which should also maintain strong milk production.
CHEESE:
Cheese prices have increased to the highest level over the past two months. It is possible prices could move back to the highs of early June. Blocks peaked at $1.9550 and barrels at $1.87. These prices are not much higher than the current levels. Spot prices may show further strength today.
BUTTER:
It is uncertain at what level butter will find support. Plentiful supplies and some moving to storage for later demand when normally inventory would decline do not bode well for higher prices. Cream supplies are slowly increasing as ice cream production slows and more milk is standardized for school accounts. Churning will remain active.
