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¢)
Today's expectations:
• Class III to open lower
• Cheese futures to open lower
• Class IV to open steady
• Butter to open soft

Grain futures
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.

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.