Editor’s note: This market commentary is provided by the Dairy Division at FCStone in Chicago, Ill.
The Class III futures ended the week’s trade with mixed results as just over 1,100 contracts changed hands. The October through December contracts closed between unchanged and 6 cents higher, while the 2014 contracts finished between 4 cents lower and 3 higher. The first quarter of 2014 futures pack average finished the day unchanged at $16.86, while adding 3 cents week over week. The rally in the spot cheese markets failed to inspire a rally in prices that would hold throughout the day as early larger gains slipped away through the latter half of the trading session.
Spot session results:
Block cheese: $1.875 (up 1 cent)
Barrel cheese: $1.82 (up 2 cents)
Grade A NFDM: $1.90 (up 3.25 cents)
Butter: $1.475 (unchanged)
Friday’s trade saw the grain complex move into the red by the session’s end, as a late day selloff in the beans led to the greatest losses of the day. The December corn contract fell 0.25 cents to settle at 440.00, while the March 2014 contract slipped 0.50 cents lower to 452.00. The November soybean contract notched a 9.75-cent loss to close at 1300.00, while the January contract fell 10.25 cents to close out at 1293.50.
The harvest is expected to contend with wet weather forecasts for the Corn Belt over the next week. The corn harvest has been robust to date with reports of record yield results in many areas, which has led to expectations of a larger crop to be reported in the upcoming USDA report on Nov. 8.
This morning, we look for corn to open steady to 4 cents lower and beans to open 3 to 6 lower.
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