Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Lower |
Outside Market Opening Calls:
| Corn Futures: | 3 to 5 Higher |
| Soybean Futures: | 10 to 15 Higher |
| Soybean Meal Futures: | $1 to $3 Higher |
| Wheat Futures: | 2 to 4 Lower |
Milk:
Class III milk futures are slowly edging higher following cheese prices this week. The exception has been front-month January as it was the recipient of substantial volatility last week and is now trading in relation to underlying cash. There will likely be no real impact on trading due to it being New Year's Eve day. In the past when trading was open outcry, there was more of an impact as trading generally was thin as traders took the day off. Electronic trading allows traders to place orders from anywhere minimizing the impact of trading on or around holidays. Fewer people are traveling due to the virus keeping them at home or in the office watching the markets. Futures could show volatility depending on the movement of underlying cash, but it might follow the pattern of the week with limited impact even if cheese prices move. The December Class III price announced Wednesday was the lowest price since May. January may not be much better based on current futures price. However, January will be open to price movement of underlying cash over the next two weeks. It will then be generally be priced by the trade except for price adjustments based on weekly AMS prices. Dairy markets will close at 1:55 p.m. CT Thursday.
Cheese:
The recent support of cheese prices should continue as buyers are purchasing to rebuild aging programs at the lowest price they can. The uncertainty surrounding the level of demand that may be seen as a result of more money being appropriated for food aid will keep traders cautiously optimistic. It does seem as if the money provided from the stimulus bill will be used to increase purchases that are already happening for food programs and not another separate Food Box program.
Butter:
Price is just 0.25 cent from the low set on Dec. 14, and if it declines below that level, it will be the lowest since Dec. 1. After price spent a short while higher than barrel cheese and lower than block cheese, it is now the lowest of the three. Butter inventories are reportedly beginning to build again, which is significant due to already higher stocks than last year.
