OPENING CALLS:
| Class III Milk Futures: | 2 to 5 Lower |
| Class IV Milk Futures: | 5 to 10 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 1 to 2 Higher |
| Soybean Meal Futures: | $0.50 to $1 Higher |
| Wheat Futures: | 2 to 3 Higher |
MILK:
Hopes for a seasonal increase in milk prices do not seem to be taking place this year. Underlying cash prices are not reflecting any seasonal buying. Sufficient milk and dairy products keep buyers comfortable with no reason to step up to purchase more aggressively. Milk production is recovering from the recent hot weather, keeping bottling and manufacturing demand satisfied. Calf prices have declined with the weakness in cattle prices, but prices are expected to recover and not have a long-term impact on the market. USDA will release the June Dairy Products report Thursday. It will show the level of production of dairy products for the month. This report is not a market-mover. There will be no Dairy Revenue Protection prices released Thursday afternoon.
CHEESE:
The weakness in the block cheese price increases concern over the potential for prices this year. The strong price gain seen in July has had about half of it erased since it peaked on July 23. This is not a good sign for this time of year. Cheese production may slow as more milk moves to bottling, but the supply is not expected to be tight.
BUTTER:
The overall butter price is in a downtrend. It is uncertain whether seasonal buying is delayed or if buyers have sufficient supply already on hand, limiting their aggressiveness. The price will remain choppy. Retail demand has seen improvement while food service demand has been steady.
