Opening Calls:
| Class III Milk Futures: | 5 to 10 Higher |
| Class IV Milk Futures: | 10 to 15 Higher |
| Butter Futures: | Mixed |
Outside Market Opening Calls:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | Mixed |
| Soybean Meal Futures: | $1 to $3 Lower |
| Wheat Futures: | 2 to 4 Lower |
Milk:
There is the potential for cheese prices to increase again Friday based on a bit more aggressive buying that surfaced Thursday. Milk futures rebounded nicely after making new lows early in the day. There is no way of telling whether prices have found a bottom or whether this is just a price relief bounce in a bearish market. The fundamentals of the market have not really changed much over the past few weeks. However, there is some optimism over the potential of a vaccine that could return life back to somewhat normal over time. Buyers of cheese on the spot market are purchasing for current orders or to rebuild aging programs and are not looking that far out at the present time. Weather has been good for cow comfort and strong milk production that has resulted in plentiful supply. Spot milk is available as significant discounts to those who have room for it.
Cheese:
The bounce of cheese prices yesterday is likely due to buyers needing to purchase to fill orders. The unfilled bid in blocks that set the close price may push the market higher again Friday as sellers may hold back waiting to see just how aggressive the buyer will be. An increase of prices will be a selling opportunity at some point as orders are beginning to slow as the holidays are mostly covered. Some purchasing is being done for the first quarter of next year.
Butter:
Butter has made an impressive move higher this week. Supply is not tight, but strong demand requires more product. Churning is active due to plentiful cream supplies. Fresh product is being supplemented with inventory to meet demand. However, inventory remains much large than it was last year at this time. Seller may be more aggressive soon due to the higher price.
