Block cheese hits the $2 mark

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

Class III futures closed out the week with over 2,100 contracts trading in route to price gains ranging between 2 and 25 cents higher. The strength exhibited once again in the spot cheese session, coupled with a bullish fundamental setup highlighted by the milk production report released earlier in the week, continue to provide price support. The first quarter futures pack average ended the day at the price of $16.16, up 24 cents for the day, while spiking $1.08 higher week over week.

Spot session results:

Block cheese: $2.00 (up 1.5 cent)

Barrel cheese: $1.95 (up 2 cents)

Grade A NFDM:  $2.11 (unchanged)

Butter: $1.5825 (up 2.25 cents)

The grain markets all moved higher on Friday, led upwards by the strength of the soybean market. The March corn contract gained 2.75 cents to settle at 433.25, while the May 2014 contract added 3.00 cents to close out the week at 441.50.  The January soybean contract added 12.00 cents to settle at 1339.00 with the March contract settling 12.00 cents higher at 1331.00.   

Concerns over the warm, dry conditions in South America helped to bolster the soybean market, while the rampant exports of beans to China have created the potential of extremely tight domestic supplies.  

This morning, we look for corn to open firm and beans to open 3 to 5 higher.

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