Editor’s note: This market commentary is provided by the Dairy Division at FCStone in Chicago, Ill.
Class III futures ended Friday’s trading session mostly lower. The Q2 2014 futures pack average settled down 13¢, to $20.29/cwt., with a week-over-week gain of 8¢. Cash-settled cheese futures settled mixed on Friday, with the Q2 2014 futures pack finishing the week at $1.9853/lb., gaining 1.26¢ on the week. Whey futures finished the week mixed, with the Q2 2014 futures pack at 61.67¢/lb., down 1.18¢ for the week.
Class IV futures settled Friday unchanged to 13¢ higher. At $22.38/cwt., the Q2 2014 futures pack posted a week-over-week gain of 17¢. Butter futures finished out the week mixed. The sharp spike higher during the spot butter session, which saw a price increase of 10¢/lb., pushed the Q2 2014 futures pack to $1.81/lb., up 6.4¢ week over week. NFDM futures ended the week mixed, but mostly lower. The Q2 2014 futures pack average closed at $1.965/lb., falling about 0.8¢ week over week.
FC Stone's annual Dairy Outlook Conference will be held June 18-19, in Chicago. Visit www.intlfcstone.com/events for information.
Feb. 28 spot session results:
Block cheese: $2.225 (up 0.25¢)
Barrel cheese: $2.20 (unchanged)
Grade A NFDM: $2.04 (unchanged)
Butter: $1.88 (up 10.0¢)
• Class III & Cheese to open mixed
• Dry Whey to open firm
• Dry Whey to open soft
• Class IV to open slightly
• Butter to open higher
• NFDM to open steady
Grain markets ended last week with a strong rally which continued into Sunday night. Higher prices were led over concerns relating to the chaos in the Ukraine and some concerns relating to a potential delay in spring plantings due to weather.
• Grain futures to open higher
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.