OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Higher |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 9 to 10 Higher |
| Soybean Meal Futures: | Steady to $1 Lower |
| Wheat Futures: | 8 to 10 Higher |
MILK:
Milk futures are expected to follow a similar pattern as they have over the past weeks. There may be limited upside potential for Class III futures, and Class IV futures may remain supported as long as the nonfat dry milk price remains strong. Current market fundamentals indicate there will be little change anytime soon. Low milk prices and reduced calf prices are impacting farm income, but expansions are continuing, and cow numbers are expected to remain high. The August Dairy Products report will be released this afternoon. It will show the output level for dairy products, indicating demand.
CHEESE:
The block cheese price is expected to remain choppy with little upside price potential for the foreseeable future. Cheese production is increasing as milk production improves. Demand is steady but is expected to improve as the holiday season approaches.
BUTTER:
Butter will follow a similar pattern as cheese with limited upside price potential. Churning is active as more cream is becoming available. Retail demand is showing signs of improving, but it remains to be seen whether it will be sufficient to tighten supply and support the price.
