Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | 1 to 2 Lower |
Outside Market Opening Calls:
| Corn Futures: | 2 to 3 Lower |
| Soybean Futures: | 5 to 8 Lower |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | 4 to 6 Higher |
Milk:
Fundamentals have not changed much for milk. Production is slowly increasing and is running higher than last year. USDA will release the November Milk Production report on Thursday, which is expected to show strong growth in milk production and output per cow. This may be an issue as we move through the first half of next year due to many plants already running at capacity. USDA is optimistic over milk production growth, but not so optimistic over milk prices for next year, according to their estimates on the World Agricultural Supply and Demand report released last week. Much will change over the course of the year. Export demand has been strong this year and is expected to remain that way. Cheese exports may be on a roller coaster as the impact is being seen from the high prices this summer. Some of that will carry through for a period of time as prices remained high with the exception and September and this month. Strong exports should remain for butter and powder. Milk futures may trade mixed until direction is seen from underlying cash.
Cheese:
Prices just seems to be drifting or chopping along. There is no real trend being established. Holiday purchasing has slowed with some purchasing being done for anticipated first quarter needs or contractual orders. Buyers are cautious about gaining too much inventory and are rather purchasing on an as needed basis through the end of the year. Retail demand is expected to remain strong while food service demand is not expected to change much anytime soon as soon places are implementing further restrictions for restaurants again with possible broader shutdowns in some cities and states.
Butter:
Supply is plentiful with fill-in orders still moving to retail outlets. However, much of the demand through the end of the year has been filled. Traders butter price will be supported through 2021 as futures show stronger prices through November. There is anticipation that reasonable prices will keep demand strong. Spot price is expected to slip lower Tuesday.
