Editor’s note: This market commentary is provided by the Dairy Division at FCStone in Chicago, Ill.
Class III futures had a sharp reversal yesterday. We hit fresh lows in December, and the Q1 2015 pack has a little hope for support at last week’s lows, $16.76/cwt. With the spot market falling, it’s hard to be anything but bearish in the short term.
The cheese market followed along with Class III, with prices lower in the nearby months, but mixed in the latter portion of 2015.
Dry whey prices were mixed, with weakness in the nearby months.
The NFDM market had a relatively quiet open to the week, trading mixed. The market seems stuck in a short-term holding pattern at current levels, as the spot market has found stability.
Class IV was relatively quiet yesterday, with nearby months seeing most of the gains.
USDA’s monthly Milk Production report is due out tomorrow afternoon.
Nov. 17 spot session results:
Block cheese: $1.8800 (down 6.25¢)
Barrel cheese: $1.9150 (unchanged)
Grade A NFDM: $1.1875 (up 0.75¢)
Butter: $1.9875 (unchanged)
• Class III futures to open lower
• Class IV futures to open steady
The grain markets opened the week mostly lower, but bullish export inspections and a bullish crush report led to soybeans rallying. Soybeans continue to set new export records. Export inspections were bearish for corn, helping to keep it lower on the day. After the close, corn harvest was reported at 89% completed, in line with the 5-year historical average; soybeans were reported at 94% complete, vs. a 5-year average of 96%.
• Corn futures to open steady to higher
• Soybeans and soybean meal to open higher
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