Editor’s note: This market commentary is provided by the Dairy Division at FCStone in Chicago, Ill.
Class III futures finished last week with contracts settling between 15¢ lower and 13¢ higher, with the 2014 first-quarter futures pack average at $21.32/cwt., up 8¢ for the day and up 20¢ on the week. The monthly Milk Production report, issued during the week, was viewed as neutral.
Cash cheese futures settled Friday with mixed results, finishing the day between 1.2¢ lower and 1.5¢ higher. The 2014 first-quarter futures pack closed out the week at $2.0813/lb., up 0.80¢ for the day while 2.30¢ higher week over week. The results of the Jan. 22 Cold Storage report were viewed as neutral to slightly bearish.
Class IV futures settled Friday between 19¢ lower and 16¢ higher. The 2014 first-quarter futures pack average gained 8¢ Friday to settle at $22.83/cwt., slipping a total of 12¢ lower week over week.
NFDM futures closed out the week with contracts settling between 1.100¢ lower and 0.575¢ higher. The 2014 first-quarter futures pack average price shed 0.058¢ on Friday to settle at 202.517, while dropping 0.641¢ lower over week.
Butter futures finished the week with mixed results, settling between 0.350¢ lower and 3.800¢ higher. The 2014 first-quarter butter futures pack average gained 2.5¢ for the day, while decreasing by a total of 0.117¢ week over week, to settle at 179.800.
Jan. 24 spot session results:
Block cheese: $2.31 (up 1.5¢)
Barrel cheese: $2.275 (up 1.75¢)
Grade A NFDM: $2.05 (down 2.0¢)
Butter: $1.89 (down 1.0¢)
• Class III to open lower
• Cheese futures to open lower
• Class IV to open steady
• Butter to open soft
Grain markets were mixed to end last week. The March corn contract inched 0.50¢ higher to settle at $4.295, as the May 2014 contract gained 0.75¢ to settle for the week at $4.36. The March soybean contract increased by 7.75¢ to settle at $12.8475, with the March contract adding 7.50¢ to close out at $12.70.
Today, we look for grains to open firm.
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