Dairy markets: Recapping last week’s futures prices

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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.

 

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.



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