OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 23 to 25 Higher |
| Soybean Meal Futures: | 3 to 4 Higher |
| Wheat Futures: | 2 to 3 Higher |
MILK:
Milk futures are expected to trade mixed as traders will be uncertain whether cheese prices will continue to increase and if the butter price will continue to decline. Traders will weigh seasonal buying against higher milk production. There are no major dairy reports this week to influence trade. The World Agricultural Supply and Demand Estimates (WASDE) report will be released on Tuesday, providing USDA's estimates on milk production, milk prices, and dairy product prices for this year and next year. The report will show grain production estimates, which will have implications for feed prices for the year.
CHEESE:
Cheese prices may see further gains but may be limited unless demand increases, and the supply of cheese tightens. Cheese output was strong in June and is expected to have improved in July compared to last year due to increased milk production.
BUTTER:
There is no indication that the butter price has found a bottom. However, lower prices should increase demand. International demand remains strong while domestic demand is steady to weak compared to a year ago. Manufacturers are not willing to hold supplies and continue to offer them to the market rather than speculate on higher prices that may not develop
