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

The flurry of action on Monday was followed by a breather on Tuesday. Volume was subdued, remaining under 1K, and price changes were modest as most months swayed between slightly lower and slightly higher throughout the day. Blocks were unchanged and barrels were slightly lower.

Thursday is the last trading day for November 2011 milk. The upcoming Dairy Products report is unlikely to be a reason for the lackadaisical trade yesterday, but it could be a market mover should any major variances from expectations arise. We look for more pressure to come back to the spot market and, therefore, the futures prices as well.

Corn remained up on another weak U.S. dollar trading day. It didn’t hurt the upside momentum that crude rallied big on the news that the Iranian’s raided the UK embassy in Tehran. Some short-term technical indicators have flipped to buys, but the medium/long-term indicators are all still pointing bearish. Chinese economic concerns persisting haven’t done much to provide long-term strength ideas either. 

We look for corn to open 6 to 9 cents lower and beans to open 2 to 4 lower.

Daily CME spot market prices:

Block cheese: $1.8125 (unchanged)

Barrel cheese $1.815 (down 0.5 cent)

Butter: $1.6675 (up 0.75 cent)  

Grade A NFDM: $1.45 (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., International Assets Holding Corporation, 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.