OPENING CALLS:
| Class III Milk Futures: | 10 to 15 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Higher |
| Soybean Futures: | 3 to 6 Higher |
| Soybean Meal Futures: | $0.50 to $3 Higher |
| Wheat Futures: | 1 to 2 Higher |
MILK:
Milk futures are expected to be under pressure in response to the negative June Milk Production report. Higher milk production and the substantial increase in cow numbers will influence trade ahead of spot trading. Milk production from June has already been absorbed into the market and we have seen higher cheese prices since then, indicating good demand. However, the report indicates milk supplies will be plentiful for bottling and manufacturing demand. This may reduce any supply concerns buyers may have.
CHEESE:
Cheese prices have been supported as buyers have been aggressive in their purchases, looking ahead to fall demand. Buyers have not been leapfrogging over each other, but have been purchasing steadily. There may be a limit to their aggressiveness as continued strong milk production will keep plants running on full schedules.
BUTTER:
There is no indication of the butter price finding a bottom. It has not been very long since the price was at or below this level. Buyers should turn more aggressive soon as they look ahead to fall demand. Low prices, cure low prices, and the market may be near that level.
