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

Plenty of milk didn’t halt the rally earlier this year but without fresh, startling news from overseas it has put the brakes on of late.

The April 2013 milk production report was released this afternoon but due to the sequester cuts the report was released with partial data. There are no estimates of total milk cows nor estimates for milk per cow.

We would term this report slightly bearish as total milk production was slightly greater than expectations. Total U.S. milk production was announced at 17.270 million pounds above our estimate for 17.213 million pounds. The 23 state milk production came in at 16.079 million pounds up 0.3 percent from last year and slightly above our expectation for 16.033 million pounds.

Spot Session Results

Block cheese: $1.77 (unchanged)

Barrel cheese: $1.755 (down 0.5 cents)

Grade A NFDM:  $1.68 (unchanged)

Butter: $1.595 (down 2 cents)

This week’s crop progress report was the most highly anticipated this year. Expectations were high heading into yesterday afternoon’s report and traders were talking record one week planting pace. Amid the anticipations corn (and the grain complex at large) see sawed all day yesterday between pushing and breaking support to holding it and ultimately closing mixed – mostly higher with nearby corn lower; the weight of the expectations were felt almost too strong to live up to. In the end though corn was revealed to be 71 percent planted this week vs. 64 percent expectations and compared to just 28 percent last week (it is a record pace). We have caught up as the average is 79 percent, forget last year’s 95 percent at this time, we are back to being on schedule.

Beans jumped too coming in at 24 percent vs. 6 percent last week and 42 percent on average. Overnight corn felt the pressure of the report as prices fell and all eyes anticipate December 13 corn with a four in front of it very soon, but beans held firm on incredibly tight old stock supplies, note the July13/November13 spread below which has really exploded.

 We look for grains to open lower, save for front month beans.

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.