OPENING CALLS:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | 4 to 6 Lower |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 4 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 2 to 3 Higher |
MILK:
It may be difficult for traders to buy into milk futures before spot trading, as the negative activity on Friday in the cash markets will leave traders cautious. The July Cold Storage report showed a decrease in inventory, but lighter than usual, leaving the market in a neutral position. One thing we see is that milk production may not slow down anytime soon, and cow numbers may continue to increase. Less expensive feed prices will keep farmers focused on milk output to improve cash flow.
CHEESE:
It is uncertain whether the lower cheese prices on Friday will generate increased buying interest or sufficient supplies will leave buyers less aggressive and purchasing on further weakness. The inability of spot prices to trend higher during this time of year does not bode well for the upside potential of the market.
BUTTER:
The spot butter price moved back to multi-year lows on Friday, which may indicate further weakness as buyers are not aggressive and sellers continue to offer supplies to the market. Manufacturers do not want to build plant inventories and buyers do not see the need to be aggressive.
