Opening Calls:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
Outside Market Opening Calls:
| Corn Futures: | 1 to 2 Higher |
| Soybean Futures: | 8 to 12 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 2 to 4 Higher |
Milk:
Milk production is growing rapidly with cow numbers and milk per cow increasing. This trend may put the market is a precarious situation again through the first half of 2021. Not in the same situation as this year due to the result of COVID-19, which shut many things down immediately for a period of time, requiring milk to be dumped and milk production to be curtailed. However, it is likely milk production will be requested to be curtailed again by plants if the current trend of production continues. This will remain to be seen as the year progresses. Plants have been able to handle the milk thus far as plants have been running near or at capacity. It is anticipated spot milk prices could show some large discounts as we move through the rest of this month as milk is diverted to find processing capacity. This may keep milk prices under pressure.
Cheese:
The declined of barrel cheese has done little to change the market. Price has been moving in a 5.75 cents range for over a month, yet volatility in Class III futures has been incredible. Blocks have also been sideways, but in a slightly wider range during the same period of time. Cheese prices may coast in current price ranges through the end of the year. So far support has held, but there is concern prices could weaken further in order to spur demand.
Butter:
There is good demand for butter, but retail orders are slowing as much of the supply for the holidays has been shipped. USDA will release the November Cold Storage report on Monday, which is expected to show a decrease of butter inventory from the previous month, but an increase from a year ago. Churning has been active due to heavy cream availability even though high fat Class I and Class II products have been utilizing higher volumes than usual due to strong demand. Price may not move very much in the near-term.
