OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | 2 to 6 Higher |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 4 to 5 Higher |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | $4 to $5 Higher |
| Wheat Futures: | 9 to 10 Higher |
MILK:
Class IV futures continue to widen the gap between them and Class III futures. The September and October contracts are at a $2.00 price spread. Cheese prices remain choppy while nonfat dry milk remains supported. There is no shortage of milk and output is expected to remain higher than last year through the rest of the year. The decline in cattle prices is receiving more attention as it is impacting calf prices, which have been a significant source of income for the farm. The current weakness in cattle prices may be temporary, but the impact is significant, and the duration is uncertain.
CHEESE:
There is not much to be expected from the cheese market. Supply and demand seem balanced, keeping prices lower and in a range. The inability of prices to trend higher at this time of year is cause for concern. The hope is for demand to improve significantly and reduce inventory more than usual.
BUTTER:
The butter price remains in an overall downtrend even though there have been some price bounces. Strong support remains elusive. Manufacturers continue to offer substantial volumes of butter on the spot market. Buyers remain confident supplies will remain sufficient for demand.
