Friday's CME Dairy Market Recap

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

Class III Futures

Front month Class III contracts traded lower Friday as Sept – Dec contracts settled 8 to 22 cents lower. Futures were mixed in 2015, settling between 5 cents lower and 10 cents higher with no particular trends. Volume on the Globex platform was light Friday as an estimated 862 contracts were exchanged. Dry whey futures experienced a slight correction after rallying most of the week. The Q4 contract average settled at 62.3333 cents (DOWN 0.3667).

Class IV Futures

Friday was another very quiet day in Class IV futures with light volume. The biggest move came in December as the contract slid 26 cents lower. Butter futures were mixed, but mostly lower in the rest of 2014. The September and November contracts settled 1 and 3 cents lower respectively. NFDM futures were bearish again on Friday, but no contracts managed to decline more than a penny.

CME Spot

Although Friday’s spot market was uneventful, this week has shown some big moves in cheese and NFDM. Cheddar blocks had a weekly average price of 2.0840 (UP 0.1030) and cheddar barrels had a weekly average of $2.1090 (UP 0.1430). The NFDM session had more bearishness Friday as the market fell another 2 cents. The weekly average price for spot NFDM came out to $1.5800 (DOWN 0.0850). Spot butter did not move away from the settlement price of $2.4000 even through 37 loads were traded this week. With a weekly average of $2.4000 the market average is 8.1 cents lower than last weeks.

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



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