OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 12 to 13 Higher |
| Soybean Futures: | 28 to 32 Higher |
| Soybean Meal Futures: | $6 to $7 Higher |
| Wheat Futures: | 3 to 9 Higher |
MILK:
There is not much fundamental change expected in the near-term. The forecast for hot weather resurfacing later this week in the Corn Belt has significantly impacted grain futures overnight, as corn will soon enter into the pollination stage. The hot weather will impact milk production and components in those areas. That could trigger a psychological boost to milk futures and possibly increase buying interest in the spot market. However, the overall milk production may not be impacted sufficiently to tighten supply. Milk production is expected to remain above a year ago throughout the rest of this year.
CHEESE:
The end users of cheese have not been concerned about supply. This has left them unaggressive in the spot market. Manufacturers have continued to offer cheese on the spot market to limit building inventory. Cheese demand has been good with buyers able to purchase sufficient supplies. Some buyers have increased ownership in preparation of later demand.
BUTTER:
Buyers may turn more aggressive in butter as hot weather will reduce milk components and tighten cream supplies. However, it is not expected to tighten the butter supply to the extent of causing concern. However, buyers may step up in an effort to be proactive rather than reactive.
