Class III futures pushed higher last Friday, with the 2Q 2014 futures pack average settling at $20.21/cwt., a week-over-week gain of 85¢. USDA’s Milk Production report for January was viewed as slightly bearish in our opinion.
Cash cheese futures finished the week with the 2014 contracts settling mostly higher. The 2Q 2014 futures pack finished the week at $1.9727/lb., up 8.77¢ week over week. The results of the Cold Storage report were viewed as slightly bearish versus our expectations. American cheese stocks were estimated at 630.67 million lbs., up 2.01% month over month, while still 1.95% lower than during the same period last year. Total cheese stocks were estimated at 1.01591 billion lbs., up 0.65% month over month, while down 1.58% year over year.
Whey futures ended Friday’s trading session mixed. The 2Q 2014 futures pack average finished the week at 62.85¢/lb., up 1.35¢ for the week.
Class IV futures settled higher, with the 2Q 2014 futures pack posting a week-over-week gain of 90¢/cwt.
Butter futures closed Friday’s session mixed. The results of the Cold Storage report were viewed as slightly bearish versus our expectations. Butter stocks increased by 22.8% month over month, to 138.13 million lbs., yet are still 33.30% lower than the same period last year
NFDM futures finished the week higher. The 2Q 2014 futures pack average added 9.97¢ week over week.
FC Stone's annual Dairy Outlook Conference will be held June 18-19, in Chicago. Visit www.intlfcstone.com/events for information.
Feb. 21 spot session results:
Block cheese: $2.1625 (up 3.25¢)
Barrel cheese: $2.1575 (up 4.75¢)
Grade A NFDM: $2.0450 (unchanged)
Butter: $1.7850 (up 0.5¢)
• Class III to open higher
• Cheese to open higher
• Dry whey to open steady
• Class IV to open steady
• Butter to open steady
• NFDM to open firm
Grain markets finished last week mixed, as soybeans moved higher, but corn pushed lower. The March corn contract settled 2.75¢ lower to 4.53/bushel, while the May 2014 contract dropped 3.25¢ to settle at 4.59/bushel. The March soybean contract gained 12.5¢ to settle at $13.71/bushel, while the May contract added 12.5¢ to close out the week at $13.60/bushel.
• Corn to open lower
• Soybeans & meal to open higher
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