Editor’s note: This market commentary is provided by the Dairy Division at FCStone in Chicago, Ill.
Class III was higher in the front two months and a few cents lower elsewhere -- that after having seen many months up and down 15/20. If that’s the bear hammer, then watch out for the bull horns…
The cheese spot market at the CME was once again very interesting, as the spread remains historically wide at 10 ¼ cents (normal is 3-5 cents blocks over barrels). The grilling season is looking delayed with wet weather for much of the country forecast at least through this week and into next week--- hedge those cull cows! That demand concern might be part of the reason why barrels are lagging so much.
Spot session results:
Block cheese: $1.87 (up 3.25 cents)
Barrel cheese $1.7675 (up 1.25 cent)
Grade A NFDM: $1.78 (unchanged)
Butter: $1.76 (up 2 cents)
USDA pegged corn planting at 2% this week vs. 16% last year and 7% on average — not a strong star. In fact, the slowest start in 15 years, and one that will remain slow next week as well. But, of course, with all the monstrous-sized planters, we can catch up quickly.
Those hoping for a turnaround Tuesday have reason to be optimistic as beans were up 6 to 12 overnight, corn only a penny lower and wheat mixed alongside outside markets that are bouncing slightly after yesterday’s big hits.
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