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

June-August 2014 Class III futures closed out last week pushing lower, while September -December contracts posted gains. The 3Q 2014 futures pack average slipped 20¢ lower Friday to settle at $20.04/cwt. Cash-settled cheese futures ended Friday’s trading session with June-July contracts falling, but August-December contracts higher.  The 3Q futures pack closed out the week at $1.9840/lb., up 0.47¢ week over week. August 2014 whey futures settled down, with September and December up. The 3Q futures pack added  0.2750¢ week over week.  

Class IV futures posted nearly 100 trades in route to mixed pricing.  The November 2014 contract settled down 8¢, while remaining 2014 contracts settled between 1¢ and 18¢ higher.  The 3Q futures pack settled at $21.78/cwt., slipping 10¢ week over week. Butter futures also finished the week with mixed results. June- December contracts closed between 0.750¢ lower and 0.275¢ higher.  The 3Q butter futures pack finished the week at $1.997/lb., dropping 2.733¢ week over week.  NFDM futures closed out the week with mixed, but mostly higher, price action. June-November contracts settled between 0.100¢ and 1.750¢ higher, while December contract slipped 0.575¢.  The3Q futures pack averaged $1.783, falling 0.642¢ week over week.


June 6 spot session results:

Block cheese: $2.05 (unchanged)

Barrel cheese: $1.9675 (unchanged)

Grade A NFDM: $1.8575 (down 0.25¢)

Butter: $2.2225 (down 1.75¢)


Today's expectations:

• Class III & Cheese to open lower

• Dry Whey to open mixed

• Class IV to open steady

• Butter to open slightly lower

• NDFM to open slightly firm


Grain futures

Grain markets finished the week mostly higher, led by the strength in the wheat market.  The July corn contract settled 10.0¢ higher at $4.59/bushel, while the December 2014 contract gained 10.5¢ to settle at $4.5775.  The July soybean contract slipped 3.50¢ to settle at $14.57, while the November contract gained 8.25¢ to finish at $12.19.


Today’s expectation:

• Corn & Soybeans to to open soft

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


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