OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 9 to 10 Lower |
| Soybean Meal Futures: | $5 to $6 Lower |
| Wheat Futures: | Steady to 1 Higher |
MILK:
The news each day seems like a broken record. Fundamentals remain little changed, and underlying cash price movement remains choppy. I have written numerous times that milk production is improving seasonally as cow comfort improves. This is expected to continue. The hope is that demand increases along with it, and more so, that supplies may tighten and prices rise. That may be a tall order in the current market environment. For the most part, hot weather is behind and will not be a factor in milk output. The bigger factor will be the low milk prices and lower calf and cattle prices.
CHEESE:
It is difficult to say whether cheese prices have found a bottom. The trend is down, and as long as cheese is readily available, buyers will remain unaggressive.
BUTTER:
Butter shares similar fundamentals as cheese. It is uncertain where price support will be. It is difficult to know whether Fall and holiday demand will increase sufficiently to utilize the volume of butter available to the market. Churn activity in some locations has increased, with plants operating six days per week. The supply remains sufficient for demand.
