OPENING CALLS:
| Class III Milk Futures: | 2 to 4 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 2 to 4 Higher |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 2 Higher |
MILK:
The price pattern has been choppy and is likely to continue to remain that way for the near term. The volume of loads offered on the spot market is sufficient to meet the demand, leaving it unnecessary for them to remain consistent buyers. The dynamic of the market has changed as larger farms and the income from calves will leave the market less responsive to seasonality and market signals that would have had a greater impact more quickly in the past. The hope is that demand will improve and keep up with the growth in milk production. The June Dairy Products report released on Thursday indicates that increased production is being absorbed. Inventory has not been building, according to the latest Cold Storage report.
CHEESE:
The bounce in the block cheese prices may continue, but it may have limited upside potential. The price has a long way to go to regain what was lost over the past three weeks.
BUTTER:
Butter showed a strong gain on Thursday as buyers purchased a lot of butter on the spot market. It was impressive to see the price rise with 79 loads traded. However, there were 62 loads offered for sale remaining at the close. There are plentiful supplies of butter available.
