OPENING CALLS:
| Class III Milk Futures: | 5 to 10 Lower |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Steady to 1 Lower |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Mixed |
| Soybean Futures: | 4 to 7 Higher |
| Soybean Meal Futures: | $3 to $5 Higher |
| Wheat Futures: | Mixed |
MILK:
Similar pressure that was seen on nearby Class III futures may be seen again Friday. Cheese prices could see further weakness, but that weakness may be limited. The November Milk Production report will be released on Monday and will be watched closely to see whether culling has slowed and production per cow improved. A reduced milk supply has resulted in plants actively courting new producers. This has not been seen for quite some time. Some plants have informed producers that they will allow them to add cows to their herds even if the plant has a quota in place. However, that will not happen overnight as heifer replacements are somewhat tight and other farm costs have increased considerably.
CHEESE:
The large demand for the holidays may be over. The question is whether all that has been purchased will be utilized. There have been more reports indicating that some holiday venues have been cancelled with more people potentially rethinking their holiday plans due to the surge of COVID-19 cases. How much impact this could have on dairy demand is uncertain. However, as we saw last year, consumers may consume just as much dairy at home likely resulting in no real impact.
BUTTER:
Strong demand has supported price and that demand is expected to remain. Cream supply has been tighter, reducing butter output. However, cream is beginning to become more available. This will eventually increase butter production. However, it may take some time to rebuild inventory. Price should remain choppy.
