Class III futures settle mixed

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

Class III markets yesterday found themselves with a little continuation of the previous session in the nearby months; however, the story was not the same in deferred contracts. Class III settled unchanged to +13 through the remainder of 2013, while 2014 contracts settled mixed, anywhere from -11 to +9.  Month-over-month selling activity in the block cheese market during September was down from August and below the 2012 monthly average of 75 loads at 33. Support for the market has settled is in the mid-$1.70’s and resistance is in the mid-$1.80’s. The block cheddar cheese price is currently 1.75 cents below the ending price for August at $1.7650, while the barrel price is 5.50 cents lower at $1.7150.

Spot session results:

Block cheese: $1.765 (unchanged)

Barrel cheese: $1.715 (unchanged)

Grade A NFDM:  $1.83 (unchanged)

Butter: $1.61 (unchanged)

Corn prices continued to deteriorate, settling down 2 1/2 cents in December in the aftermath of a larger stocks report yesterday. Robust if not record yields have influenced this market with Monday night data showing the crop at 55% good, unchanged from last week. Forecasts have been calling for possible 32-degree temperatures this weekend, but then warming with no significant frost risk for the next 14 days. Producer selling has been very light with a vast majority likely holding inventory until after Jan. 1. The same was true with soybeans as prices declined some 14 ¾ cents in November as funds liquidate on improving U.S. yields. The soy crop is now rated 53% good with Illinois realizing better-than-expected yields.

This morning, we look for a mixed open ― corn steady to 3 lower and beans 5 to 10 higher. 

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