Editor’s note: This market commentary is provided by Curtis Bosma at HighGround Dairy in Chicago, IL.

Dairy Market Recap: Very busy day for spot cheese market

Class III Futures
Friday’s Class III futures market was very flat despite a bullish day in the spot cheese market. Contracts settled between six cents lower and ten cents higher. Whey futures continued to move higher. The October – December contract average settled at 59.4667 cents (UP 0.6333). Cheese futures gave off mixed signals, but were very stagnant during Friday’s market. The largest move was a penny higher trade in February 2015. Class III futures continue to show signs of support for the near term.

Class IV Futures
A bullish day in NFDM futures helped bring Class IV futures slightly higher in the front months.  The NFDM Oct-Dec contract average settled at $1.6267 (UP 0.0108). This week’s National Dairy Product Sales Report showed a higher price for NFDM which sparked this recent rally. Butter futures started the day off slightly lower, but rallied back to settle over two cents higher in August and September. Class IV futures had a relatively slow day. Contracts settled one to eleven cents higher through November. The February 2015 contract strangely traded one time and settled at 22 cents lower.

CME Spot
Friday was a very busy day in the spot cheese market. Seven cheddar blocks traded with three different buyers and sellers, and six cheddar barrels traded. The market for both blocks and barrels moved higher as buyers continue to stay active with these price levels. The spot butter market had one seller offer a load at unchanged on the open. The seller then chased the market down to $2.3400 before being able to sell a load. Buyers then pushed the prices back up to $2.3725 buying a total of eight loads along the way.


Disclaimer:  The risk of loss in trading futures and options can be substantial.  Past performance is not indicative of futures results.