This market commentary is provided by the Dairy Division atFCStone in Chicago, Ill.
Class III futures were driven higher on Friday, in part due to the surge in dry whey prices. The 2Q 2015 futures pack average rose 10¢ on Friday to close at $14.74/cwt., with a week-over-week gain of 45¢. Class III market seems to have entered a period of steady to higher prices, lacking any significant new information.
Cheese futures broke away from the strength of the Class III and dry whey markets, instead pushing mostly lower. The 2Q 2015 futures pack average fell 1.20¢ lower for the day, at $1.5550/lb., but gained 1.40¢ from the close of the week prior.
Dry whey contracts leapt higher Friday, settling between 1.0¢ and 3.925¢ higher. The 2Q 2015 futures pack average settled at 37.16¢, gaining 3.79¢ week over week.
Class IV contracts were driven mostly higher to end last week. The 2Q 2015 futures pack average gained 19¢ over the previous week’s close.
NFDM futures closed the week mostly higher, as the January contract slipped 0.975¢ lower while the February-December contracts settled between unchanged and 1.250¢ higher. The 2Q 2015 futures pack average gained 3.425¢ week over week.
Butter futures rallied Friday to settle between unchanged and 3.35¢ higher. The 2Q 2015 futures pack average added 0.533¢ week over week.
The recent GDT auction resulted in a 1.0% increase in the All Products Trade Weighted Index, yet this increase in overall value was driven in part due to a decrease in overall volume of products offered.
Jan. 23 spot session results:
Block cheese: $1.4800 (up 1.0¢)
Barrel cheese: $1.4450 (down 0.5¢)
Grade A NFDM: 98.25¢ (up 2.24¢)
Butter: $1.5500 (unchanged)
Today’s expectations:
• Class III futures to open 5¢ to 15¢ higher
• Cheese futures to open 0.5¢ to 1.5¢ higher
• Dry Whey futures to open 0.5¢ to 1.5¢ lower
• Class IV futures to open steady
• NFDM futures to open 0.5¢ lower to 0.5¢ higher
• Butter futures to open steady to 1¢ higher
Grain futures
Grain markets closed Friday’s session mixed, as the general deflationary tone towards commodities aided in the declines in soybean and wheat markets, while the corn market drew strength from continuing export demand.
Today’s expectation:
• Corn futures to open 2¢ to 5¢ lower
• Soybean futures to open 3¢ to 8¢ lower
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