Editor’s note: This market commentary is provided by the Dairy Division at FCStone in Chicago, Ill.
With the spot market mixed (blocks down 2.5¢, but barrels 3¢ stronger), futures had little choice but to rally to close the gap. Spot equivalents are valued right at $22.00/cwt., while March finished March 11’s session at $20.99/cwt., even after rallying a sharp 49¢. Class III futures prices in other first-half months were 10¢ to 27¢ higher, while deferred futures pushed higher by 4¢ to 18¢ from July all the way through April 2015. Cash cheese futures mostly tagged along with the Class III market. Whey futures volume pulled back after yesterday’s heavy activity.
The class IV market found some support from the higher class III trade, but not too much. NFDM futures were mixed but mostly lower yet again. Spot butter prices were unchanged yesterday, and that left futures to rally to close the gap.
Feb. 11 spot session results:
Block cheese: $2.1050 (down 2.5¢)
Barrel cheese: $2.18 (up 3.0¢)
Grade A NFDM: $2.0475 (up 3.0¢)
Butter: $1.7650 (unchanged)
• Class III & Cheese to open higher
• Dry whey to open mixed
• Class IV, Butter & NFDM to open slightly higher
It was a wild day for the grain markets, with the soybean market rebounding from overnight double-digit losses to post nearly double-digit gains. the corn market lagged. The anticipation of export sales seems to be the continual carrot for the bulls.
• Grains to open slightly lower
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