OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 1 to 2 Lower |
| Soybean Meal Futures: | Mixed |
| Wheat Futures: | 1 to 2 Higher |
MILK:
There was surprising volatility in the August Class III futures contract. The price ranged from a low of $16.45 to a high of $16.69 with a volume of 97 contracts at the time of this writing. The price is currently 15 cents lower. The other contracts traded have shown mixed prices. The light trading interest seen on Monday may be duplicated Tuesday unless there is significant movement in the underlying cash. The overall market seems to be comfortable with current supplies at current prices. There is no concern over a supply shortage and no concern of an oversupply. However, the current supply has kept milk prices low. There does not seem to be much potential for price increases in the near term.
CHEESE:
Cheese prices are expected to remain choppy. Cheese production is steady and providing sufficient supply for demand. Inventories are near the same level as a year ago, indicating demand is keeping up with production. However, supplies remain sufficient, leaving buyers purchasing on an as-needed basis.
BUTTER:
The butter market is struggling to develop an uptrend. Inventory is below a year ago, but there is sufficient supply for demand. Buyers have been able to purchase what they have needed on the spot market without having to be aggressive. Increased demand has been readily met with supply. Choppy prices are expected to continue.
