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

It was a relatively quiet open to the week for the Class III market, After a slightly higher open, prices traded to a mixed close when the spot cheese markets both closed unchanged.

Volume was strong at over 960 contracts traded. Nearby months were mostly higher as they continue to play catch-up to the spot market. From Nov through May, prices closed 2 to 15 higher on the day. Deferred futures, however, were under a little pressure likely as producers were looking to sell with the grain markets moving to new lows. From June through Dec, prices settled steady to 8 lower.

Spot session results:

Block cheese: $1.875 (unchanged)

Barrel cheese: $1.82 (unchanged)

Grade A NFDM:  $1.90 (unchanged)

Butter: $1.475 (unchanged)

It was a red day for the grains as reports of strong harvest progress and soybean supplies making their way into the pipeline kept price pressure on the market. The physical market pressure led to a technical sell-off as beans led the way lower, falling by 28.75 cents to $12.7125; corn traded to a fresh low closing down 9.25 cents at $4.3075, and wheat closed down 9.75 cents at $6.8100.

After the close, harvest reports had corn 59 percent harvested vs. a 62 percent average, while soybeans were 77 percent harvested ― right in line with their historic average. It’s hard to read too much into the harvest progress numbers, so the big question for today is will we see follow-through technical weakness or can we pull out a “Turnaround Tuesday.”

Follow-through buying from yesterday continues this morning, with corn expected to open 1 to 4 cents higher and beans 5 to 10 higher.

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.