Dairy markets: Class III continues downside move

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

Editor’s note: This market commentary is provided by the Dairy Division at FCStone in Chicago, Ill.

Class III milk continued its downside move. The May contract took the largest loss, settling down 42¢, to $21.45/cwt., while the November contract settled up 3¢, to$18.89/cwt. The market looks technically like it is time to buy the dip. One might expect to see some buying come in early to test the waters.

Blocks moved 1¢ lower; barrels continued their downward move, losing 3¢ lower. It may take until the end of the week before we get a clearer picture on the availability of cheese at the exchange level, and if prices will take a larger correction. We don’t believe there is currently enough excess cheese out there for a sharp correction to spot prices just yet.

Class IV futures were mixed. Spot butter gained 2¢; the $1.99/lb. level will be watched with great anticipation to see if we just test the recent high or break through it. A breakout could lead to the $2.05 level in a heartbeat and, in turn, higher futures prices for the near-term.  

NFDM futures put in a mixed session. China and Mexico have been comparatively quiet with sourcing product and have really ground the market to a halt this month.

FC Stone's annual Dairy Outlook Conference will be held June 18-19, in Chicago. Visit www.intlfcstone.com/events for information.

 

March 26 spot session results:

Block cheese: $2.4225 (down 1.0¢)

Barrel cheese: $2.33 (down 3.0¢)

Grade A NFDM:  $2.0225 (up 2.25¢)

Butter: $1.97 (up 2.0¢)

 

Today's expectations:

• Class III & Cheese to open higher

• Dry Whey to open mixed

• Class IV, Butter & NDFM to open steady

 

Grain futures

Corn continued on its sideways pattern; beans tracked higher. One would expect to see some shuffling of positions going on prior to the weekend, so expect more volatility out of the soybean market over the next couple of days.

 

Today’s expectation:

• Soybeans to open higher

• Corn to open mixed

 

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.



Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


Massey Ferguson 5600 Series

Our most advanced multi-tasking mid-range ever. Perfect for livestock, dairy, hay, and general all-around farm work, these exceptional loader tractors ... Read More

View all Products in this segment

View All Buyers Guides

)
Feedback Form
Leads to Insight