Block cheese closes down at $1.575 on CME

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

Class III futures traded 1,178 contracts in a mostly lower fashion Friday as Open Interest rose by a noteworthy 238 contracts. Fresh selling is likely a reaction to continued spot cheese price weakness. Block cheese posted a new low for 2013 at $1.5750 on Friday, which is the lowest price since the beginning of last June. During the ensuing futures market weakness, most of the declines were posted thru June. While March posted the only double-digit loss Friday, the second-quarter pack lost 16 cents from the prior week to finish at $17.43.

Spot session results:

Block cheese: $1.575 (down 2 cents)

Barrel cheese $1.56 (down 1 cent)

Grade A NFDM: $1.4975 (unchanged)

Butter: $1.575 (up 2.5 cents)

The grain complex finished last week on a firm note. The corn and soybean markets are in the middle of a range-bound trade with users ready to buy on the bottoms and farmers waiting to sell at the peaks. This pattern is likely to continue until we get more comfortable ― or more worried ― about the weather patterns for the U.S. growing season.

U.S. weather has finally given us moisture in some of the driest regions. We keep hearing from farmers west of the Mississippi concerned about how dry it is on their farms. Eastern farmers have gotten good moisture and feel much better. Let’s hope the moisture keeps coming every week.

This morning, we look for corn to open 3 to 5 cents higher and beans to open 1 to 3 higher.

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. 

 

 



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