Cheese futures took their cue from the Class III session, mimicking price moves throughout the day on 189 total trades. The futures settled mixed, with prices ranging from down 2.3 cents to up .3 cents. As with the Class III, the heavy losses were experienced in the July and August contract which fell 2.3 and 1.7 cents, respectively. The July contract has fallen 3.7 cents since the Friday prior, closing out at $1.608. The August contract has fared worse, losing 4.2 cents over the week to settle at $1.618. The slightly bearish nature of the Dairy Products Report should give the market bears something to consider this week, but the current overall outlook looks bearish for the time being.
Corn had an interesting trade Friday, capping off the week of what looks to be a speculative weather trade in the grain complex for weeks to come. After trading up in the morning and through the open, corn futures were chopping until around 10 a.m. when they began to reverse direction. We are at an interesting crossroads: fundamentals vs. macro-economic concerns; which will win out? We suspect the outside markets will continue to weigh and the weather reports will sway back and forth meaning we will chop violently. If Europe gives some short-term solutions, then the outside markets could bounce and bolster grain prices, which are currently looking for more moisture.
Our advice for corn buyers is to cover summer feed needs ahead of pollination.
We look for corn to open 8 to 10 cents higher as the U.S. dollar is softer and weather concerns loom once again. We look for beans to open mixed.
Daily CME spot market prices:
Block cheese: $1.65 (up 3 cents)
Barrel cheese $1.5325 (down 0.25 cent)
Butter: $1.40 (unchanged)
Grade A NFDM: $1.185 (up 1.25 cent)
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., International Assets Holding Corporation, 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.