IDFA Dairy Forum kicked off yesterday. We’ll be sure to share highlights our team hears around market sentiment.
Spot block cheese recovered roughly half of last weeks weakness with prices up 5.5 cents to 1.50 on 2 trades. Barrels pushed slightly higher intrasession but ultimately finished unchanged on 1 trade with 5 offers left unfilled. That higher block prices lent some support to nearby futures but deferred contracts were mostly lower. Class III volume was stronger with over 2100 contracts trading. Half of that volume was seen in the February contract as we’ve seen liquidating on Feb while rolling in March over the last few sessions. February open interest has been falling since last week but remains well above average. Given the size of managed money and net other positions, there’s a possibility most have been speculating in this contract.
Spot butter started the week unchanged which caused futures to finish mostly lower as we se Q1 prices consolidated slightly while Q2 and Q3 prices remain nearby their contract highs and hold a premium to spot months. Futures volume was higher with 297 as open interest rose by 178 contracts. Spot nonfat also remained unchanged with no trades as futures volume tumbled from Friday with only 47 contracts trading as prices were mixed.
Despite some recent weakness in U.S./EU skim markets, SMP was up 2.1% at the GDT Pulse auction today, although WMP was down 0.2% from the last Event.
Chinese milk equivalent imports for December were down 14.2% from the previous year which was weaker than the -5% to -10% expected. WMP and SMP were particularly weak while other products weren’t too bad. We should see a spike in imports for January as the tariff on WMP and SMP from NZ dropped to zero.
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI . StoneX is a trading name of StoneX Financial Ltd (“SFL”). SFL is registered in England and Wales, Company No. 5616586. SFL is authorized and regulated by the Financial Conduct Authority [FRN 446717] to provide to professional and eligible customers including: arrangement, execution and, where required, clearing derivative transactions in exchange traded futures and options. SFL is also authorised to engage in the arrangement and execution of transactions in certain OTC products, certain securities trading, precious metals trading and payment services to eligible customers. SFL is authorised & regulated by the Financial Conduct Authority under the Payment Services Regulations 2017 for the provision of payment services. SFL is a category 1 ring-dealing member of the London Metal Exchange. In addition SFL also engages in other physically delivered commodities business and other general business activities which are unregulated and not required to be authorised by the Financial Conduct Authority. StoneX Group Inc. acts as agent for SFL in New York with respect to its payments services business. StoneX APAC Pte. Ltd. acts as agent for SFL in Singapore with respect to its payments services business. ‘StoneX’ is the trade name used by StoneX Group Inc. and all its associated entities and subsidiaries.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. Past performance of any futures or option is not indicative of future success. Indicators are not a trading system and are not published as a specific trade recommendation. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
© 2024 StoneX Group Inc. All Rights Reserved.
Discover more insights
