OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 3 to 5 Lower |
The strength in the Class III milk futures may be short-lived if overnight trade is any indication of price direction. Higher futures prices may increase the interest of traders to sell into the market for potential weakness, as the market is expected to remain choppy. Class IV futures are expected to show further weakness due to the potential for lower butter prices. This may be a pattern moving through the rest of the year as milk production remains higher than a year ago. Buyers of dairy products have little concern over supplies and will purchase as needed. Lower prices will increase the buying interest for later demand.
CHEESE:Cheese production is steady despite increased volumes of milk moving to bottling for school accounts. Cheese demand is steady, with an ample supply available to the market. This may keep cheese prices in a range over the next two months when demand is stronger. It may be difficult for the market to trend higher.
BUTTER:Time is running out for the butter price to increase seasonally. Even if demand improves, it is unlikely the price will move back to the previous high of $2.62 on July 7. More cream is becoming available for churning. Increased butter production will limit the seasonal decline of inventory.
