Editor’s note: This market commentary is provided by the Dairy Division at FCStone in Chicago, Ill.
The Class III market continues to find good support in a number of places. First, the GDT auction was relatively bullish and triggered a rally in the Class IV market which offered support, and then the spot market continued its upside momentum.
Blocks actually widened out vs. the barrels, closing at $1.9500, up 2.25 cents, while the barrels gained 1.75 cents to $1.8400. The block market pushed to fresh highs, while the barrel remains 4.5 cents below its high from two weeks ago.
While deferred futures have been the leader of late, yesterday it was the nearby months that really caught fire. January settled up 45 cents to $19.12, while Feb. through June were 16 to 25 cents higher.
Spot session results:
Block cheese: $1.95 (up 2.25 cents)
Barrel cheese: $1.84 (up 1.75 cent)
Grade A NFDM: $2.11 (up 2 cents)
Butter: $1.55 (unchanged)
Grain futures found some support with concern building about a warmer, drier forecast for Argentina in the coming days. Corn traded just a 7-cent range on the day, finishing at $4.2675, +3.75 cents. Soybeans were up double-digits, but faded a bit late to close up 8.75 cents in Jan. at $13.4650.
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