Market recap: Light futures trading, heavy spot markets

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

Class III Futures

Class III futures started off very flat on Thursday, but after a bullish day in the spot cheese market the front months moved higher from their previous settlements. The August and September contracts settled 15 and 7 cents higher respectively. The Oct 2014 – Dec 2015 contracts settled anywhere from unchanged to 13 cents lower. Volume on the Globex platform was light as an estimated 951 contracts traded on Thursday.

Class IV Futures

Thursday’s Class IV market had extremely light volume with trades in only three months. August jumped to settle 19 cents higher. NFDM futures provided some support moving a penny higher in August and half a penny higher Sept – Nov. Butter futures had a mixed day in the market despite butter’s strong day in the spot market.

CME Spot

The spot market was busy Thursday with action in all three markets. Cheddar blocks and barrels both moved two cents higher with great deal of buyer interest. No cheddar blocks traded, but four barrels traded at the high of $2.0600 (UP 0.0200). NFDM was offered by two sellers who brought the price down two cents, but could not find any buyers. The spot butter session had multiple buyers driving the price up, but only one load traded at the high of $2.4500 (UP 0.0600).

CME Spot Price ($/lb.) Daily Change (₵/lb.) CME Futures Price ($/cwt) Daily Change ($/cwt)
Cheddar Blocks  $ 2.0225 + 2.00 Class III (August)  $ 21.41 + 0.15
Cheddar Barrels  $ 2.0600 + 2.00 Class III (Oct - Dec) average  $ 19.52 - 0.05
NFDM  $ 1.7150 - 2.00 Class IV (August)  $ 23.15 + 0.19
Butter  $ 2.4500 + 6.00 Class IV (Oct - Dec) average  $ 19.97 - 0.02

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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