Opening Calls:
| Class III Milk Futures: | 10 to 30 Higher |
| Class IV Milk Futures: | Steady to 5 Higher |
| Butter Futures: | Mixed |
Outside Market Opening Calls:
| Corn Futures: | 1 to 3 Higher |
| Soybean Futures: | 1 to 3 Higher |
| Soybean Meal Futures: | $2 to $4 Higher |
| Wheat Futures: | 2 to 5 Lower |
Milk:
The signing of the stimulus bill triggered a bullish reaction again overnight. The reaction was not quite as strong as it was one night last week, but it does indicate the belief that demand of dairy for food programs will increase the demand for cheese and milk similar to what took place this year. Traders want to get ahead of the market despite the weakness of cheese just before Christmas. It is unclear how much this will impact dairy in 2021 as the industry seems better prepared for it this time. However, any increase in demand is always beneficial. One concern is that there will be plenty of milk available but will there be sufficient processing capacity over the next months in order to handle the milk and get it moved though the proper channels. There has been renewed discussions over the possibility of plants initiating quotas again for a period of time. There remains much uncertainty as we begin the final trading week of the year.
Cheese:
Cheese prices have not moved to any great extent since the middle of November, yet there has been substantial volatility in milk futures over the same period. The test will be Monday if cheese buyers will step into the spot market aggressively like they did at the beginning of last week when the stimulus bill was put forward for the president to sign. Now that it is officially signed, it is possible the same aggressive buying could be seen. Traders will try to assess supply with the purchase and distribution of dairy products through food programs.
Butter:
A strong price increase of butter is not expected. Increased demand through food programs should be easily met with large supply. Butter does not age as cheese does. Fresh product and stored product are of the same consistency allowing more product to always be available. Price is not expected to move much this week.
