Block cheese closes unchanged at $1.4875

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Editor’s note: This market commentary is provided by the Dairy Division at FCStone/Downes-O'Neill in Chicago, Ill.

Class III futures opened the week very quietly with mixed prices early, and they held throughout the day into settlement. The spot market was opened and closed with no activity to speak of and that left the market very quiet on the day with just 652 trades taking place.

April ended the day 12 higher, while other months were +2 to -10 cents. Technically, the market remains on a sell signal and fundamentally that seems like the most likely direction for the next price movement. Despite the strong milk production, however, the market wants verification that product will make its way to the market before falling too much further to the downside. That little nugget is on our minds this morning as we have learned many times over to concern yourself with a market that’s not doing what you think it ought to be doing.

With outside markets getting hit hard throughout the early morning hours, grains got the day started with weakness and were never able to recover as profit-taking took center stage. 

It is worth talking about the USDA’s Weekly Crop Progress Report. We’re planting corn and how. According to the USDA ― and just about anyone you talk to ― planting is off to a remarkable start. The USDA says 7 percent of the corn is in the ground as of Easter Sunday. The five year average is 2 percent. This is the fastest rate of planting since the USDA began issuing weekly Crop Progress Reports back in 1985.

Daily CME spot market prices:

Block cheese: $1.4875 (unchanged)

Barrel cheese $1.46 (unchanged)

Butter: $1.43 (unchanged)  

Grade A NFDM: $1.2675 (unchanged)

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.

 

 

 

 



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