| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 1 to 2 Higher |
The movement in milk futures was not very exciting on Tuesday, with the underlying cash providing little to get excited about. The same might be true today as traders look ahead to the July Milk Production report to be released on Thursday. However, spot trading will influence the market. The current market fundamentals may not provide much direction in the near term. Demand for more fluid milk for school accounts is being readily met due to higher milk production compared to a year ago. Milk prices should increase seasonally due to the increased demand, but there may be a limit to the gains unless demand improves. Traders are content to scalp the market with short-term trades rather than pick a long-term price direction.
CHEESE:The time of year would favor cheese prices increasing as buying increases in preparation for the fall and holiday season. Greater demand from both bottling and manufacturing is tightening the supply. Cheese plants are finding prices for available spot milk running $3.00 lower to $2.00 above class.
BUTTER:The butter price may move in a sideways range in the near term as supply and demand seem to be balanced. As the calendar moves forward, time may be running out for the price to see a significant increase for the remainder of this year. International demand is strong, but it has not had much impact on the butter price.
