Cheese futures Friday saw an uptick in both price and trading volume yesterday as buy interest continued to spread well into 2012. Prices finished unchanged to .043 cents higher on 66 total trades, the bulk of which came in the January to June time period.
Corn gained back almost all of last Friday’s losses as organized rains this week now appear likely to slip too far north to catch many of the remaining dry spots in western Ohio, Indiana, central southwest Illinois, central and south Missouri and southeastern Iowa. This leaves roughly 1/4 of the Corn Belt under declining conditions without rain.
The USDA Corp Conditions report released Monday afternoon showed corn crop conditions held steady from last week at 62% good to excellent this falls slightly behind a 63.7% 5-year average. Soybeans didn’t fare quite so well, dropping another 2 percent points to 60 percent good to excellent from last week. While we’d like all areas to look good to excellent right now, it is simply not the case — though it is completely normal to lose some ground in the ratings game this time of year.
With cooler temps pulling down from the north by midweek, expect a choppy trade on the corn market for the week. Supply is critical, but demand will drive the prices. And the USDA will give us another glimpse of their thoughts next week. Will ethanol demand show signs of weakening amid gasoline demand destruction? Will exports stay strong into the harvest and beyond? No one knows for sure, but our expectations are for a weaker demand picture from the USDA. We will forward estimates this week
Monday night prices opened with good strength but reversed throughout the night as the U.S. dollar firmed.
We look for corn to open 3 to 4 cents lower and soybeans to open firm.
Daily CME spot market prices:
Block cheese: $2.1525 (down 0.25 cent)
Barrel cheese: $2.13 (unchanged)
Butter: $2.10 (unchanged)
Grade A NFDM: $1.51 (unchanged)
These data and comments are provided for information purposes only and are not intended to be used for specific trading strategies. Commodity trading is risky and FCStone Group, Inc., International Assets Holding Corporation, and their affiliates assume no liability for the use of any information contained herein. Although all information is believed to be reliable, we cannot guarantee its accuracy and completeness. Past financial results are not necessarily indicative of future performance. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. References to and discussions of exchange traded products are made solely on behalf of FCStone, LLC. References to and discussions of OTC products are made solely on behalf of INTL Hanley, LLC, and OTC products are only available to eligible counterparties.