Editor’s note: This market commentary is provided by the Dairy Division at FCStone in Chicago, Ill.
Another Turnaround Tuesday in the books.
Traders were initially expecting softer cheese prices due to the bearish tilt of the August production report, yet as spot barrel bids entered the market with force midday yesterday, cheese and Class III markets sharply reversed their decline. Class III prices early yesterday traded as much as 10 cents lower in November and 11 cents lower in January. December Cheese futures were down as much as 1.1 cents lower in early Tuesday trade. Although blocks remained unchanged (at $1.8575 on 1 trade) for the third straight session, barrels would settle up 3.25 cents at $1.7925 on one trade. November 2013 Class III milk would eventually finish the session up 20 cents at $18.46 per cwt. December 2013 Cheese futures finished up 1.4 cents to $1.7470 per pound.
Spot session results:
Block cheese: $1.8575 (unchanged)
Barrel cheese: $1.7925 (up 3.25 cents)
Grade A NFDM: $1.86 (unchanged)
Butter: $1.47 (up 0.5 cent)
December corn futures fell 5.75 cents to $4.3825 and January soybeans shed 3 cents to $12.975 during Tuesday’s trade. Most of the pressure is being attributed to farmer selling and speculative long liquidation. The crop progress report, released late Monday, pressured both corn and beans throughout the session. USDA reported corn harvest 39 percent complete, with 60 percent of the crop rated in good to excellent condition. Soybean harvest is now 63 percent complete.
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