OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 4 to 8 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $0.50 to $1 Higher |
| Wheat Futures: | 4 to 6 Higher |
MILK:
Class III milk futures could be at a turning point if the underlying cash cheese prices have reached a plateau. Futures held up well despite the slight decline in blocks and no buyers showing up during spot trading on Wednesday. There is anticipation that seasonal buying will increase, supporting higher prices. Milk output is at higher levels than a year ago and will continue to supply both bottling and manufacturing without difficulty. Demand will need to improve to utilize the increased production, or the price potential will be limited. Strong cheese and butter production was recorded in June and is expected to continue.
CHEESE:
Cheese buyers may have reached a threshold for the time being and are unwilling to bid higher. This may prompt sellers to offer more cheese on the spot market to take advantage of the higher prices. However, seasonal buying may continue and provide support to the market.
BUTTER:
The butter price continues to struggle as both retail and food service demand have slowed. This may be temporary, but it is keeping the market under pressure. There are reports of butter being put into storage for later demand. Inventory generally declines at this time of year.
