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

Class III futures bounced off short-term support levels and managed to settle mixed. Losses were contained to the first quarter, with the March contract leading the way to the downside, shedding 30¢ to close at $20.52/cwt., and the first-quarter pack closing 9¢ in the red, at $21.49/cwt.

Cash settled cheese futures followed suit with Class III that saw a mixed trade and front month weakness and stronger price action in the deferred months.

Dry whey continues to be a slow moving market, with May through August finishing weaker, and all other months steady at unchanged.

Class IV futures saw the entire 2014 strip pull back despite a rather bullish GDT auction. The lower price action was a result of the spot session that saw Grade A NFDM retreat back to $2.00/lb., and butter remaining flat. NFDM futures tanked as well, and butter futures weren’t immune.


Feb. 4 spot session results:

Block cheese: $2.36 (unchanged)

Barrel cheese: $2.32 (unchanged)

Grade A NFDM:  $2.00 (down 4¢)

Butter: $1.89 (unchanged)


Today's expectations:

• Class III, Cheese & Dry Whey to open slightly lower

• Class IV, Butter and NFDM to open mixed


Our interpretation of the Dairy Products report released yesterday:

• Butter—bullish

• Cheese—neutral

• Nonfat dry milk— slightly bullish

• Dry whey—slightly bearish

• WPC & Lactose—bearish


Grain futures

Grain futures continued their steady march higher, with March corn futures posting gains in 10 of the last 11 session. March beans followed suit to the upside for its fourth consecutive session. The pace of exports is providing bullish fundamentals. Canadian canola stocks set a record at 12.60 million tonnes, up 55.3% from the year prior,  which could certainly have an impact on the soymeal marketplace, but logistic issues continue to hamper movement of that product out of Canada.


Today’s expectation:

Grains look to open steady to lower  


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