Opening Calls:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Steady to 5 Lower |
| Butter Futures: | 1 to 2 Lower |
Outside Market Opening Calls:
| Corn Futures: | Mixed |
| Soybean Futures: | 5 to 11 Higher |
| Soybean Meal Futures: | $3 to $6 Higher |
| Wheat Futures: | 2 to 4 Lower |
Milk:
Milk supplies are plentiful for all needs. Milk receipts at the plant level continue to increase with spot milk available for purchase to those who want it. Many manufacturing plants are running at capacity, which may result in a problem moving into spring flush in a few months. Strong manufacturing may keep the upside potential for prices limited in comparison to last year. But the year will be filled with volatility as the events of last year as fresh in trader's minds. President-elect Biden is planning to unveil another stimulus bill shortly after he takes office. What that will contain in regards to agriculture in general or dairy in particular is anyone's guess. Trading may be choppy prior to spot trading as buyers of cheese could step back up at these lower prices.
Cheese:
The weakness Wednesday indicates prices will not go steadily higher as they did at times last year. Buyers and sellers have greater supply available to work with. Buyers may not need to be as aggressive on the daily spot market as more might be available for purchase through other channels. Buyers come to the spot market in the attempt to purchase supply when it may not be available through regular suppliers. Traders will remain cautious until spot trading takes place.
Butter:
Price has resumed the downtrend with the next price target possibly being the lower of $1.10 set on April 23. This is only 18.75 cents lower and certainly within the realm of the current market fundamentals. Churns continue to manufacture butter meeting demand and sending more to inventory. Sellers continue to offer supply on the spot market in order to limit the growth of plant inventory.
