Editor’s note: This market commentary is provided by the Dairy Division at FCStone in Chicago, Ill.
Yesterday felt like finding a body of water in the Sahara! It may have been a mirage, but Class III futures actually closed higher. The March contract posted a positive close for just the second time since Dec. 30. Settlements were 9¢ to 18¢ higher from January through May, and mixed (-11¢ to +3¢) from there forward.
It’s still a difficult task to frame a bullish argument in the medium term, but it looks like we could potentially see this rally continue in the short term.
Jan. 15 spot session results:
Block cheese: $1.5900 (unchanged)
Barrel cheese: $1.5950 (unchanged)
Grade A NFDM: 96.50¢ (down 2.25¢)
Butter: $1.5425 (up 0.25¢)
• Class III, Cheese & Dry Whey to open mixed
• Class IV, Butter & NFDM futures to open steady
Grains opened higher on Thursday, but soybeans couldn’t sustain the rally and pulled other futures lower. There was some bullish news in the form of strong corn and soybean export sales. The soybean market is clearly worried about the size of the South American crop.
• Grain futures to open slightly higher across the board
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