OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 5 Lower |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 5 to 7 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 4 to 5 Higher |
MILK:
The bearish implications of the June Milk Production report influenced milk futures contracts through the end of the year. Whether this will impact spot cheese prices is yet to be seen. Some of the selling pressure was due to concern that the block cheese price would be unable to increase on Thursday. The possibility of cheese buyers having reached a threshold due to the outlook for strong milk production and thereby sufficient cheese supplies, increased the caution of traders. The June Cold Storage report will be released Friday afternoon. Inventories are expected to have increased. However, cheese invegtory may be near the levels of a year ago with butter inventory running well below a year ago. This would indicate strong demand as increased production is being absorbed.
CHEESE:
The block cheese price is at the highest level since early April while the barrel cheese price is at the highest level since mid-November 2025. With cheese production at its current level, it may be difficult to see much further upside in price in the near term.
BUTTER:
It is uncertain whether butter buyers will step up more aggressively at the low price or if they will remain content to hold back to see whether manufacturers will continue to move suppies on the spot market. More aggressive buying should increase seasonally, but that may be delayed this year due to the current supply.
