OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 4 Higher |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 4 Higher |
MILK:
There is not much that can be said about the dairy market other than what has already been said. Milk production is sufficient for demand and is expected to improve seasonally. Buyers of butter and cheese are not aggressive as supplies are readily available. The recent decline in calf prices has received attention as the income from calves has provided significant cash to the dairy operation. There has been discussion about whether culling may increase over time if prices remain or even go lower. It is too early to tell, as the recent decline in cattle prices may be for a short duration and will be driven by consumer demand for beef. The volume of trading activity in the August Class III contract overnight was significant. The contract is mostly priced but adjusted to the weekly AMS prices released on Wednesday. There were 116 contracts traded.
CHEESE:
Cheese prices are expected to remain choppy with little reason to move much. Buyers have not been aggressive in the spot market. They have been able to purchase much of what they need through regular channels in the country.
BUTTER:
Butter continues to show weakness with manufacturers moving supplies to limit increases in plant inventory. Buyers have been able to purchase supplies readily without having to be aggressive. Churns are running on full five-day weekly schedules.
