Opening Calls:
| Class III Milk Futures: | 5 to 15 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
Outside Market Opening Calls:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 4 to 6 Higher |
| Soybean Meal Futures: | $2 to $3 Higher |
| Wheat Futures: | 3 to 5 Lower |
Milk:
It is difficult to determine whether Class III milk futures have been overdone to the downside. The discount to November continues to widen in anticipation of further weakness. November will move very limited now that much of it has been priced. It may show some significant adjustments based on the weekly AMS prices, but large moves will not take place. It is interesting that Moderna reported its COVID-19 vaccine was 94.5% effective in results from a large trial, which is pointing to a jump in the stock market Monday. However, unlike a week ago, dairy futures are so far not reacting to the news as they did when Pfizer made their announcement last week. What took place in the market last week increases the skepticism of how quickly this would increase dairy demand. Another report Monday morning indicated things could get back to normal in about a year as it will still take time to make, distribute and reach herd immunity levels. In the meantime, current demand will need to absorb current supply.
Cheese:
Cheese prices are poised to move lower again Monday based on the close of spot trading Friday. Buyers may continue to hold back as they have moved to purchasing on an as-needed basis now that the large push for holiday cheese buying in mostly finished. Supply of fresh cheese has quickly become plentiful under the current market situation.
Butter:
There little change in butter fundamentals. Price is expected to continue to move in the sideways pattern. Retail featuring is increasing spurring more demand, but supply is sufficient to satisfy that demand with little difficulty.
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