Editor’s note: This market commentary is provided by the Dairy Division at FCStone in Chicago, Ill.
The Class III market had a relatively quiet session Tuesday, with prices closing mostly lower on the day. Settlements from April through June were 22¢ to 26¢ lower, while the second half finished 5¢ to 18¢ lower.
Class IV futures continue to be mostly lower, despite the mixed product prices. The spot NFDM market traded lower. The spot butter market continued to move slightly higher. We are nearing the deadline for purchases to hit the store shelves prior to Easter, and we wonder if the market may double top near the $2.00/lb. mark.
FC Stone's annual Dairy Outlook Conference will be held June 18-19, in Chicago. Visit www.intlfcstone.com/events for information.
March 25 spot session results:
Block cheese: $2.40 (unchanged)
Barrel cheese: $2.36 (down 1.75¢)
Grade A NFDM: $2.00 (down 1.5¢)
Butter: $1.95 (up 0.5¢)
• Class III, Cheese & Dry Whey to open lower
• Class IV, NDFM to open mostly lower
• Butter to open quiet
Grains were very quiet Tuesday as the market failed to find direction. USDA releases Planting Intentions and Grain Stocks reports next Monday. Spring planting doesn’t look likely to get started early, and may continue to support the already bullish trending market.
• Grain complex to open steady to lower
The trading of derivatives such as futures, options, and swaps may not be suitable for all investors. Derivatives trading involves substantial risk of loss, and you should fully understand those risks prior to trading. Any reference to past performance is not indicative of future results. All references to futures/options trading are made solely on behalf of FCStone, LLC. All references to swap execution and bi-lateral swaps are made solely on behalf of INTL Hanley, LLC. FCStone, LLC will clear swaps when applicable. Swaps are only available to eligible counterparties. All observations of economic, political and/or market conditions are not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. and its subsidiaries and should be construed as market commentary. All recommendations to buy or sell a specific derivative or forecasting statements regarding market activity and the pricing thereof should be construed as a solicitation in any jurisdiction in where such an offer or solicitation would be legal. Proper context and guidance including but not limited to the particular trading objectives, financial situations and the needs of the intended audience were taken into consideration when this recommendation was prepared. Contact your account representative for specific advice to meet your specific trading preferences or goals. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. and its subsidiaries. Sources of information believed to reliable were used in preparing such observations, and no guarantee or representation regarding the accuracy of those sources has been made. INTL FCStone Inc. and its subsidiaries are not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material.