Opening Calls:
| Class III Milk Futures: | 3 to 5 Lower |
| Class IV Milk Futures: | 5 to 10 Lower |
| Butter Futures: | 1 to 2 Lower |
Outside Market Opening Calls:
| Corn Futures: | 6 to 9 Lower |
| Soybean Futures: | 10 to 15 Lower |
| Soybean Meal Futures: | $1 to $3 Lower |
| Wheat Futures: | 3 to 7 Lower |
Milk:
Increasing milk production and the potential for plant quotas earlier is becoming a reality earlier than usual. The information that Land O' Lakes will be enforcing base milk production for December and possibly longer is now on the table. It is likely they will leave this in place through a portion of next year as demand generally slows through the first half of the year during which time milk production generally increases. Others may follow suit as 2021 unfolds. There have been good results over some vaccines for COVID-19, but it will take time to get this distributed and improve the confidence of consumers that it is safe to return to a more social lifestyle. For right now, there will be little change in consumption patterns in the near term. Milk futures may come under further pressure.
Cheese:
The increase of blocks Monday should be viewed as a bounce. Buyers needed to pick up some cheese and had to bid up due to no offers being made available. A higher price might bring sellers back in again to take advantage of the bounce. There is little fundamental reason for prices to trend higher for any extended period of time.
Butter:
Even though butter inventory declined during the month of October, inventory is building relative to a year ago. September butter stocks were 18% above a year ago after the decline of stocks that month. Stocks declined in October with inventory now 28% above a year ago. It indicates movement is good, but production is higher than demand. That is not a good combination for extended price strength anytime soon.
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| #completedairyprogram |
