OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Lower |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | Mixed |
MILK:
The bearishness of the May Milk Production report had already been factored in. There was little reason to put further pressure on milk futures after the report was released. The report showed that milk production remains strong and milk prices are not going to increase anytime soon. The trend continues for increased milk production and higher cow numbers. This may be the pattern for the rest of the year. Low milk prices have not yet increased culling, as farmers do not find it necessary to cull for cash flow. Beef prices continue to remain high, and so will calf prices.
CHEESE:
Rather than finding support at the low prices, buyers continue to hold back and purchase at lower prices. Sellers continue to offer supplies on the spot market rather than build inventory in an abundant market. Higher milk production means increased cheese output. Demand has been keeping pace, but not strong enough to tighten the supply.
BUTTER:
The market has eliminated the gains seen in late May and is now at risk of falling back to the lows last seen in January. Churning is active, and supplies are sufficient. Manufacturers continue to sell butter on the spot market to manage inventory.
