OPENING CALLS:
| Class III Milk Futures: | 6 to 10 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 3 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | Steady to 1 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 2 Lower |
MILK:
The nearby August contract adjusted lower after the release of the weekly AMS prices. Overnight trade is down 13 cents. The August Federal Order prices will be released on Sept. 4. The September Class III contract is the only one above $18.00 through the rest of the year. Milk prices may remain under pressure if demand does not improve and milk output remains above last year. Milk production per cow continues to increase along with higher cow numbers. This will provide sufficient milk for bottling and manufacturing.
CHEESE:
The retracement of the cheese prices on Wednesday solidifies the pattern of price increases being selling opportunities. Manufacturers are willing to move supplies as quickly as possible rather than hold for higher prices that may not develop. Demand needs to improve to tighten supply and provide support for prices. The inability of prices to increase at this time of year does not bode well for the market.
BUTTER:
The butter market is not in a good position as sellers continue to offer supplies to the spot market at lower prices. Even these lower prices have not been able to stimulate any long-term aggressive buying interest. The lower bids remaining at the close of spot trading on Wednesday are concerning, as they were below $2.00, with one bid at $1.69. Buyers are holding back due to the aggressive selling.
