OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 13 to 14 Lower |
| Soybean Futures: | 31 to 34 Lower |
| Soybean Meal Futures: | $7 to $9 Lower |
| Wheat Futures: | 7 to 8 Lower |
MILK:
Milk futures closed the week on a sour note. Class III futures came under pressure after the June Milk Production report was released and showed continued higher milk output and a substantial increase in cow numbers. The June Cold Storage report showed about what was expected. The positive aspect of the Cold Storage report was that cheese inventory was nearly steady with June 2025 and butter inventory remained below a year ago. This indicates demand has remained strong as increased cheese and butter production has been absorbed. Traders are not expected to be aggressive ahead of spot trading.
CHEESE:
The decline in block cheese on Friday may cause buyers to step back to see how aggressive sellers will be. Cheese buyers may have purchased what they needed for the time being and may remain sidelined. Demand has remained steady, and with a higher output of cheese may keep pace with an increase in demand.
BUTTER:
Now that the block cheese price has declined, maybe the butter price will increase. During the increase in cheese prices, butter remained under pressure. This is just sprecuation as there is no specific reason that this would happen. It would seem butter price is low enough to entice buyers to step up more aggressively to build inventory as they look ahead to fall and holiday demand.
