Opening Calls:
| Class III Milk Futures: | Steady to 5 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady |
Outside Market Opening Calls:
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | 8 to 12 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | 1 to 3 Higher |
Milk:
Milk is still being impacted from the bearish implications of the milk production report as well as weaker cheese prices. On top of that, the surge in COVID-19 cases is resulting in restrictions being put on indoor gatherings and the closure of some schools again. However, these restrictions should not impact fluid milk consumption, but it may have an impact on the consumption of other dairy products. One thing we can see is that the virus certainly has not slowed milk production. That may come to bite us later as the market may be overwhelmed with milk supply next year, primarily as spring flush takes place. We are a long way from there, but the stage may be set for heavier milk supply earlier in the year than usual. Right now, futures are anticipating where milk prices might be next year.
Cheese:
There is no indication of a bottom in prices. Stability of barrels over the past three days does increase the interest of traders thinking that a bottom may have been found as sellers do not feel the need to aggressively unload product. There has been more interest over moving block cheese to the market in order to reduce the supply that manufactures have on hand. The positive aspect is that the block/barrel spread is moving closer together again.
Butter:
Price will continue to be choppy with limited upside potential. If the market has not been able to uncover substantial buying interest to push price higher by this time of year, there is little anticipation of a price rally through the end of the year or even for a period of time next year. Buyers remain unconcerned over the availability of supply.
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| #completecalfcare |
