Class III and cheese futures up Wednesday

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

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

Despite a second day of CME spot cheese inactivity, Class III and cheese futures settled sharply higher Wednesday. The lack of bids during the spot session spooked traders Tuesday, yet the lack of excess inventory appeared to support futures trading yesterday.

October cheese futures failed to break through the $1.80 resistance level during the last four weeks, yet the market easily cleared that hurdle yesterday and October cheese futures led the entire complex. Oct was up 2.2 cents to $1.8140 per lb. Bidding was seen across the board. Q4 cheese futures settled up 1.6 cents to $1.7440 per lb. First-half 2014 cheese futures settled +1.28 cents to $1.67 per lb.

Spot session results:

Block cheese: $1.7825 (unchanged)

Barrel cheese: $1.77 (unchanged)

Grade A NFDM:  $1.805 (up 0.5 cent)

Butter: $1.43 (down 0.5 cent)

Grain futures were once again on the defensive yesterday.

Weekly corn conditions have deteriorated slightly yet their net short position has grown by an estimated 13,000 positions over the last two days. December corn futures closed 5.75 cents lower Wednesday to $4.695 per bushel, while November soybeans finished 34.25 cents lower to $13.525 per bushel.

In news well after the grain close yesterday, President Obama cleared his first hurdle towards initiating a military strike in Syria, as a key Senate panel voted to authorize the use of force. This vote and subsequent votes will be key factors to determining short-term direction in both the dollar and energy markets.

This morning, we look for corn to open steady to 3 cents lower and soybeans to open 5 to 10 lower.

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.

 

 

 

 



Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


Biotal Forage Inoculants

"Biotal offers a range of forage inoculants proven to help win the battle to preserve feed quality and value. Call ... Read More

View all Products in this segment

View All Buyers Guides

)
Feedback Form
Leads to Insight