OPENING CALLS:
| Class III Milk Futures: | 8 to 15 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 1 to 3 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 4 to 5 Higher |
MILK:
Class III milk futures rebounded overnight with the expectation that cheese prices will remain supported and potentially increase as buyer interest improves. If there is any impact on buying interest due to hot weather and reduced milk output, it is considered to be psychological. Even with reduced milk production, there is sufficient milk available for demand. An increase in demand would provide fundamental support and at least maintain milk futures at the current levels. There is no indication culling has been increasing. This will keep cow numbers high. Calf prices may have decreased recently as a result of lower cattle prices, but that is not expected to last long as cattle numbers are low and beef demand will improve after the seasonal decline. Significant income from calves will continue keeping farms profitable despite lower milk prices.
CHEESE:
Cheese prices have had a nice uptrend and are nearing the highs of early May. Prices may have difficulty moving above that level unless production stabilizes and demand improves. However, the weakness in the butter price may be a limiting factor. The strength or weakness of butter is generally a barometer of cheese, as it historically indicates price potential.
BUTTER:
The weakness in butter on Wednesday was a surprise, as it seemed the market was finding support. The price remains in a sideways trend with supply and demand balanced
