Class III futures settle mixed, but mostly lower on CME

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

Editor’s note: This market commentary is provided by the Dairy Division at FCStone/Downes-O'Neill in Chicago, Ill.

The Class III future markets settled yesterday with mixed but mostly lower prices as yet another quiet spot cheese session failed to prompt much futures buying. 

The Oct12 contract was the only contract to settle higher, gaining 4 cents to $21.05, while the Nov12 and Dec12 contracts closed down 24 and 23 cents, respectively. In 2013, the Jan13 through Sept13 contracts settled between 3 and 13 cents lower, while the fourth quarter remained unchanged. A total of 925 contracts traded hands yesterday, while 83 percent (766) of those trades occurred in the fourth quarter of 2012. 

The lack of movement and activity in both the blocks and barrels spot sessions this week has capped the recent bullish trend in the Class III market, particularly in the fourth quarter of 2012. Market sentiment seems to be that with butter and NFDM physical weakness, cheese is sure to follow shortly and Class III futures are reflecting this sentiment trading at a discount to the current spot market value. The block/barrel/whey pricing is currently showing a Class III equivalent of $21.39, while November futures closed the session at $20.71.

The grain markets started the day with steady to slightly higher prices before shedding value throughout the trading session as traders positioned themselves before the USDA WASDE report Thursday morning. The Dec12 corn contract ended the day down 5 ¼ cents to $7.36 ¾, while the Nov12 soybean contract finished down 26 ¾ cents to $15.23 ¼. The Dec12 wheat contact was able to buck the negative trend, closing up 5 ½ cents to $8.69 ¾. Funds lightened their long positions in both the corn and bean contracts, while adding wheat contracts, continuing a trend established on Monday. .

Block cheese: $2.10 (unchanged)

Barrel cheese $2.06 (unchanged)

Butter: $1.93 (down 1 cent) 

Grade A NFDM: $1.66 (unchanged)

These data and comments are provided for information purposes only and are not intended to be used for specific trading strategies. Commodity trading is risky and FCStone Group, Inc., INTL FCStone Inc., and their affiliates assume no liability for the use of any information contained herein. Although all information is believed to be reliable, we cannot guarantee its accuracy and completeness. Past financial results are not necessarily indicative of future performance. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. References to and discussions of exchange traded products are made solely on behalf of FCStone, LLC. References to and discussions of OTC products are made solely on behalf of INTL Hanley, LLC, and OTC products are only available to eligible counterparties.

 

 



Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


5M Series

Five M Series Models: 5065M, 5075M, 5085M, 5100M, and 5115M (65-115 hp). If you spend a lot of time on ... Read More

View all Products in this segment

View All Buyers Guides

)
Feedback Form
Leads to Insight