Dairy markets: June Dairy Month ending weaker

June 26 spot session results:
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Block cheese: $1.6400 (down 1.25¢)
Barrel cheese: $1.6250 (down 2.0¢)
Grade A NFDM: 83.00¢ (up 2.0¢)
Butter: $1.9150 (up 2.5¢)
 
The 2015 Class III market finished last week sharply lower on heavier volume. Spot prices continued to erode, calling into question steep futures premiums.  Technical indicators are also weak.  The July to December Class III pack average is trading about $16.53/cwt.  Our next downside technical target at closer to $16.20/cwt.
Cheese futures traded to steep price declines in the near-dated contracts, as spot prices dropped lower.  The 4Q 2015 futures pack closed out the week at $1.7710/lb., marking a week-over-week decline of 0.73¢.
The whey market closed out Friday’s trading session with contracts settling between unchanged and  lower through the end of 2016, with the July 2016 contract acting as a lone outlier.
Futures outlook: We look for Class III & Cheese to open lower; Dry Whey to open steady.
 
Class IV futures faced conflicting component price action last Friday, with butter’s strength offset by NFDM weakness, leaving the Class IV market in limbo. Class IV contracts settled mostly unchanged for the day, while the Nov. 15, June 16 and Sept. 16 contracts tallied price declines ranging from 1¢ to 15¢   The 4Q 2015 pack averaged $14.60/cwt., down a penny on the day and 2¢ lower than the week prior.
NFDM futures shook off the 2¢ increase during the spot session to settle unchanged to as much as 4¢ lower through December 2016.  The f4Q 2015 futures pack averaged 99.092¢/lb.
Butter futures finished the week’s trade mixed. The butter market has been able to shake off the bearish connotations of last week’s Cold Storage Report. The 4Q 2015 pack will face a myriad of obstacles that should limit any additional price gains in the near term.
Futures outlook: We look for Butter & Class IV to open steady; and NFDM to open lower.
 
Grain futures
The grain markets surged higher during Friday’s trading session, aided by fund covering ahead of Tuesday’s crop report and concerns surrounding crop conditions due to continuing rains across the Corn Belt. The prospects of further declines in crop conditions heading into Tuesday’s Grain Stocks and Planted Acreage data should see funds resume their short covering in the corn market, while adding to their long position in the soybeans.
Futures outlook: We look for a higher open in grains.
 
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Source: DairyHerd
 

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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