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

It was a very quiet opening to the week yesterday, as prices dropped early in the day on light volume only to trade mixed after both the blocks and barrels closed unchanged on the day with no activity.

Despite the early weakness, most Class III futures closed higher by the end of the day ― only April was lower by a penny at settlement; other months from Jan through Dec were steady to 10 higher, while Dec 2012 closed unchanged. Volume was light at just 636 trades on the day and 143 of those trades were ex-pit. The lack of activity on futures and a lack of any other fresh fundamental news leave us without much new to add this morning.

In the grain complex, Monday proved to be a volatile trading day for the session prior to a USDA report. Prices were soft to open the session and traded to as much as 12 lower; soybeans down as much as 20 lower, and wheat as much as 15 lower. But soybeans rallied back into the close, partially pulling corn and wheat along. Soybeans rallied in expectation of stronger exports on this morning’s report, while corn and wheat stayed softer due to a lack of export sales. On the day, corn was down 7.25 cents at 730; beans were up 3.5 cents at 1475.5, and wheat was down 12.25 at 848.75.

Block cheese: $1.76 (unchanged)

Barrel cheese $1.66 (unchanged)

Grade A NFDM: $1.5575 (unchanged)

Butter: $1.59 (unchanged)

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