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


Class III Futures

The bulls were back in town Monday as Class III futures rallied across the board. Contracts rebounded after last Friday’s dip in the market by settling 3 to 35 cents higher. Volume was light as an estimated 848 contracts traded on the Globex platform. Cheese futures moved 0.6 to 2.3 cents higher through the end of the year. Futures are now at a hefty premium to the spot market, and unless buyers get active in the spot market this rally could fall apart.


Class IV Futures

Monday’s Class IV market was extremely quiet. September received a bit of a boost, but when the market settled there were no bids through the end of the year. Butter futures seemed to have leveled out after last week’s roller coaster ride. Spot butter is still trading at a premium to futures as buyers continue to fill only their immediate needs.

CME Spot

The spot cheese market had a decent amount of buyer interest on Monday. Three cheddar blocks traded and five cheddar barrels traded to settle the market a quarter cent higher and a half cent lower respectively. The spot butter session settled two cents lower as a lone seller sold seven loads to three different buyers. The recent run-up in spot butter prices has buyers only taking what they need and not building any inventories.

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