OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Lower |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 19 to 23 Higher |
MILK:
Class III milk futures are back down near the lows and may have a difficult time rebounding. Spot prices will need to find support and trend higher before traders will buy into the market with any confidence. The market will need to prove itself before buying interest is generated. Traders continue to scalp the market rather than take any long-term positions. Milk receipts at the plant level have increased slightly after cows recover somewhat from the hot weather. There is sufficient milk available for bottling and manufacturing demand.
CHEESE:
Cheese prices may show further weakness as buyers remain unaggressive. As long as sellers offer supplies on the spot market, buyers will hold for lower prices. There is no concern over the tightness of cheese supplies. Even as bottling increases for school accounts, sufficient milk supplies will remain for manufacturing.
BUTTER:
It is uncertain whether the butter price has found support. It was good to see the price increase a penny on Wednesday despite the heavy volume of loads traded. However, the large amount of offers remaining at the close of spot trading suggests butter supplies are plentiful with limited upside price potential.
