Dairy Market Insights from our broker at INTL FCStone. From Roy Leidahl this morning — Class III and cheese are rebounding, shrugging off the corrective move, says Dave Kurzawski, broker at INTL FCStone, Chicago. A lot of these contracts have had a couple of days of correction, and spot blocks and barrels hit all-time highs yesterday. There is disbelief in the spot markets ability to stay over $2.20 for an extended period of time, says Kurzawski. These markets are very volatile. I dont see anything to change the direction of spot just yet. It may not go higher today, but it is well supported. The CME spot block price gained 2.5 cents yesterday to a record-high $2.295 on an unfilled bid and the barrel price advanced 1.5 cents to $2.2575. Yesterdays Milk Production report showing December output virtually unchanged from a year ago was neutral versus pre-report expectations, says Kurzawski. However, flat production could be considered bullish in view of strong demand. Generally in dairy, the futures markets have a bias to the upside now after the corrective move in the past few days, he says.
Posted on: Fri, 24 Jan 2014 19:30:17 +0000
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