Class III futures finished last week mixed

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

Class III futures finished the week mixed in a very light volume trade. Nearby months were steady to -5 cents, while March through June finished 3 to 8 higher. The spot market continues to be hard-to-garner-much-from with blocks moving higher, while barrels dipped. We traded a lackluster 420 contracts on the day. For the week, the market was mixed on both the spot session and the Class III futures as well. December finished the week down just 3 cents at $18.79.   

Spot session results:

Block cheese: $1.835 (up 1.5 cent)

Barrel cheese: $1.755 (down 0.5 cent)

Grade A NFDM:  $1.985 (up 2 cents)

Butter: $1.68 (up 2 cents)

The grain markets finished out the week with sharp soybean price gains. The January soybean contract gained 28 cents to $13.1950, while the corn and wheat markets languished with December corn down 0.75 cents to $4.2225, while wheat was up 2.25 cents at $6.5700. For the week, corn prices were higher by just 0.25 cents, while soybeans were up 39 cents for the week.

With December options expiring on Friday often times, the market will form a medium-term trend the following week, so perhaps today will give us some insight into what the medium-term direction, likely through the end of the year, will be.

Soybeans continue to be strong as China seems to be a relentless buyer and basis values remain firm, indicating cash market tightness. With first notice day upcoming for the November contract, it will be very interesting to see what transpires with deliveries. Keep a close eye on export sales ― if they begin to slow, there could certainly be downside for the soybean market, but we’d expect to see a sideways choppy marketplace in for the short term.

This morning, we look for grains to open mixed with beans and meal soft and corn and wheat firm.

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