Last week a roller coaster week for Class III futures

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

Class III saw a roller coaster week with futures finishing anywhere from+8 to -36. An active week, Class III saw 8,918 contracts trade, with 1,411 of those being on Friday. One thing is for sure: volatility is back in the market. With news out of New Zealand regarding a botulism scare, coupled with rumors of China banning some of their dairy products, the U.S. dairy markets saw serious swings.

Schools have reopened in some parts of the country, sending more milk into bottling plants. We are hearing that production is steady across parts of the Northeast and Mid-Atlantic, while heat issues in Idaho and the Northwest last week may affect production in those regions ― although to what degree is yet to be seen. California production seems to be looking good as favorable weather continues to prevail.

Spot session results:

Block cheese: $1.7975 (up 0.5 cent)

Barrel cheese: $1.765 (down 2.75 cents)

Grade A NFDM:  $1.7925 (unchanged)

Butter: $1.3975 (down 0.25 cent)

In the grain complex, Dec Corn and Nov Beans settled a bit weaker Friday with corn down 6 ½ cents and beans down 2 cents to 4.53 ¼ and 1182 ¼.  Corn prices continue to slump as traders expect a robust production estimate in USDA’s Monday production and acreage update. Expectations are for a crop at 14.05 with a 157.7 yield rebuilding stocks to near 2 billion bushels next year. U.S. weather forecasts remain cool for continued optimum corn pollination; however, dry weather persists over portions of Iowa. Soybean traders are expecting robust production at 3.336 with 43.6 yield. 

This morning, the open is almost irrelevant with the report release at 11 a.m., but corn looks to open mixed, bean and meal higher and wheat soft

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